Homework Help is Here – Start Your Trial Now!
Business
Accounting
Partnership - additional question Exercise: Question 1 Andy and David started a partnership of providing auditing services on 1 January 2007 and prepared their accounts to 31 December annually. Gross profit Less: Salaries - Andy - David Staff Office rental Postage and stationery Interest on partners' capital - Andy -David Depreciation Renovation of office premises Life insurance of Andy Approved cash donation Net profit RM 36,000 28,000 26,400 18,000 680 3,000 5,000 1,840 2,800 1,630 1,000 RM 160,000 124,350 35,650 The profit sharing ratio is 70% to Andy and 30% to David. Capital allowances for the Y/A 2007 amount to RM 1,800. Required: (a) Compute the provisional adjusted income / loss and divisible income / loss of the partnership for the Y/A 2007. (b) Compute the adjusted income / loss, capital allowances and approved donation allocated to each partner for the Y/A 2007.

Partnership - additional question Exercise: Question 1 Andy and David started a partnership of providing auditing services on 1 January 2007 and prepared their accounts to 31 December annually. Gross profit Less: Salaries - Andy - David Staff Office rental Postage and stationery Interest on partners' capital - Andy -David Depreciation Renovation of office premises Life insurance of Andy Approved cash donation Net profit RM 36,000 28,000 26,400 18,000 680 3,000 5,000 1,840 2,800 1,630 1,000 RM 160,000 124,350 35,650 The profit sharing ratio is 70% to Andy and 30% to David. Capital allowances for the Y/A 2007 amount to RM 1,800. Required: (a) Compute the provisional adjusted income / loss and divisible income / loss of the partnership for the Y/A 2007. (b) Compute the adjusted income / loss, capital allowances and approved donation allocated to each partner for the Y/A 2007.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please help me 

Partnership - additional question Exercise: Question 1 Andy and David started a partnership of providing auditing services on 1 January 2007 and prepared their accounts to 31 December annually. RM RM 160,000 Gross profit Less: Salaries 36,000 28,000 26,400 18,000 680 - Andy - David - Staff Office rental Postage and stationery Interest on partners' capital - Andy - David Depreciation Renovation of office premises Life insurance of Andy Approved cash donation 3,000 5,000 1,840 2,800 1,630 1,000 124,350 35,650 Net profit The profit sharing ratio is 70% to Andy and 30% to David. Capital allowances for the Y/A 2007 amount to RM 1,800. Required: (a) Compute the provisional adjusted income / loss and divisible income / loss of the partnership for the Y/A 2007. (b) Compute the adjusted income / loss, capital allowances and approved donation allocated to each partner for the YIA 2007.
Transcribed Image Text:Partnership - additional question Exercise: Question 1 Andy and David started a partnership of providing auditing services on 1 January 2007 and prepared their accounts to 31 December annually. RM RM 160,000 Gross profit Less: Salaries 36,000 28,000 26,400 18,000 680 - Andy - David - Staff Office rental Postage and stationery Interest on partners' capital - Andy - David Depreciation Renovation of office premises Life insurance of Andy Approved cash donation 3,000 5,000 1,840 2,800 1,630 1,000 124,350 35,650 Net profit The profit sharing ratio is 70% to Andy and 30% to David. Capital allowances for the Y/A 2007 amount to RM 1,800. Required: (a) Compute the provisional adjusted income / loss and divisible income / loss of the partnership for the Y/A 2007. (b) Compute the adjusted income / loss, capital allowances and approved donation allocated to each partner for the YIA 2007.
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS