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Notes: Each group is required to use other related partnership business information unique to each group provided in Table A to complete the requirements. Required: a. b. C. Current account Capital account Appropriation Statement of Profit or Loss for the year

Notes: Each group is required to use other related partnership business information unique to each group provided in Table A to complete the requirements. Required: a. b. C. Current account Capital account Appropriation Statement of Profit or Loss for the year

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use Group 4 additional information

No 1 2 3 5 6 7 TABLE A: Additional partnership business information 8 Particular Accounting year end Net Profit or Loss (does not include depreciation charges) Additional Capital contributed by Partner B via online banking on 2 February 2022. Interest on capital (Basis) Drawing made by Partner C Salary to partner Sharing of Profit or Loss Ratio Partner C is guaranteed with a minimum profit. Any deficiency will be borne by the other partners. Group 1 31 March 2022 RM460,000 RM40,000 Calculated on the basis of opening capital On 1 May 2021, the partner ithdrew RM400 and another RM700 on 1 Feb 2022 Salaries were paid to all partners in full except for partner C, RM5,000 of his salary is still outstanding. 3:2:1 RM 70,000 Group 2 30 April 2022 RM300,000 RM30,000 Calculated on the basis of ending capital Withdrew RM800 on 1 February 2022 As at the end of the accounting period, salaries were paid to partner A amounting to RM10,000, whereas partner B and C RM12,000 each. 1:1:1 RM 80,000 Group 3 31 October 2022 RM320,000 RM50,000 Calculated on the basis of opening capital On 1 June 2022, the partner withdrew RM300 and another RM400 on 1 Oct 2022 Only Partner C took the annual salary as at the end of the accounting year. Equally distributed RM 90,000 Group 4 30 Nov 2022 RM330,000 RM30,000 Calculated on the basis of ending capital RM700 was made in the first week of the third month of the accounting period. As at the end of the accounting period, salaries were paid to all partners RM8,000 each. 2:1:1 RM 90,000
Transcribed Image Text:No 1 2 3 5 6 7 TABLE A: Additional partnership business information 8 Particular Accounting year end Net Profit or Loss (does not include depreciation charges) Additional Capital contributed by Partner B via online banking on 2 February 2022. Interest on capital (Basis) Drawing made by Partner C Salary to partner Sharing of Profit or Loss Ratio Partner C is guaranteed with a minimum profit. Any deficiency will be borne by the other partners. Group 1 31 March 2022 RM460,000 RM40,000 Calculated on the basis of opening capital On 1 May 2021, the partner ithdrew RM400 and another RM700 on 1 Feb 2022 Salaries were paid to all partners in full except for partner C, RM5,000 of his salary is still outstanding. 3:2:1 RM 70,000 Group 2 30 April 2022 RM300,000 RM30,000 Calculated on the basis of ending capital Withdrew RM800 on 1 February 2022 As at the end of the accounting period, salaries were paid to partner A amounting to RM10,000, whereas partner B and C RM12,000 each. 1:1:1 RM 80,000 Group 3 31 October 2022 RM320,000 RM50,000 Calculated on the basis of opening capital On 1 June 2022, the partner withdrew RM300 and another RM400 on 1 Oct 2022 Only Partner C took the annual salary as at the end of the accounting year. Equally distributed RM 90,000 Group 4 30 Nov 2022 RM330,000 RM30,000 Calculated on the basis of ending capital RM700 was made in the first week of the third month of the accounting period. As at the end of the accounting period, salaries were paid to all partners RM8,000 each. 2:1:1 RM 90,000
This section requires students to prepare the current account, capital account and appropriation statement of profit or loss for partnership business. You are given the business's unadjusted account balances together with several related information unique to each group to complete the requirements. 1. The terms agreed by partners prior to the commencement of the partnership business as follows: Item Interest on partner's drawing Interest on partner's capital (Please Refer Table A) Interest on loan from partner 2. At the beginning of the accounting year, the partners' current and capital balances were: Partner's Name Current Account (RM) Capital Account (RM) 8,000 100,000 (5,000) 50,000 7,000 60,000 Partner A Partner B Partner C Rate per annum 5% 8% 6% 3. Partner A has advanced RM 50,000 as a loan to the partnership on 1 January 2022. The interest on loan from the partner is still outstanding. The interest on loan is to be treated as an expense. a. b. C. 4. Depreciation on machinery at 10% will be charged on an annual basis using a straight line method. The following balances were extracted from the books of partnership as at the end of the accounting period: Machinery (cost) Accumulated depreciation on machinery RM 70,000 21,000 5. Each partner is entitled to receive RM 12,000 as an annual salary. 6. The partnership adopts the fixed capital structure in maintaining its partners accounts. Notes: Each group is required to use other related partnership business information unique to each group provided in Table A to complete the requirements. Required: Current account Capital account Appropriation Statement of Profit or Loss for the year
Transcribed Image Text:This section requires students to prepare the current account, capital account and appropriation statement of profit or loss for partnership business. You are given the business's unadjusted account balances together with several related information unique to each group to complete the requirements. 1. The terms agreed by partners prior to the commencement of the partnership business as follows: Item Interest on partner's drawing Interest on partner's capital (Please Refer Table A) Interest on loan from partner 2. At the beginning of the accounting year, the partners' current and capital balances were: Partner's Name Current Account (RM) Capital Account (RM) 8,000 100,000 (5,000) 50,000 7,000 60,000 Partner A Partner B Partner C Rate per annum 5% 8% 6% 3. Partner A has advanced RM 50,000 as a loan to the partnership on 1 January 2022. The interest on loan from the partner is still outstanding. The interest on loan is to be treated as an expense. a. b. C. 4. Depreciation on machinery at 10% will be charged on an annual basis using a straight line method. The following balances were extracted from the books of partnership as at the end of the accounting period: Machinery (cost) Accumulated depreciation on machinery RM 70,000 21,000 5. Each partner is entitled to receive RM 12,000 as an annual salary. 6. The partnership adopts the fixed capital structure in maintaining its partners accounts. Notes: Each group is required to use other related partnership business information unique to each group provided in Table A to complete the requirements. Required: Current account Capital account Appropriation Statement of Profit or Loss for the year
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