Question 2 Sam, Tana, Loo and Yus are in partnership for years with invested capital of RM60,000, RM60,000, RM70,000 and RM75,000 respectively. The partners have created an agreement on the following appropriation scheme i. Interest is to be allowed on capital and charged on drawings by the firm at 8% per annum. ii. The four partners are entitled to yearly salaries as below: Sam - RM8.000 Tana-RM7.000 Loo-RM9,000 and Yus-RM 10,000...3/3 BBM206/03 ii. Profit and losses are to be shared as follows: Sam-40% Tana-25 % Loo -20% Yus -15% During the year, RM5.000 as part of each partner's salaries was paid by the firm. For the financial year ended 31 December 2023, the partnership has earned a net profit of RM80, 300, after deducting an interest on loan from Yus of RM1,000. The interest was not yet paid. The following items have to be taken into account in preparing the Profit and Loss Appropriation Account and Current Account: Sam Tana Loo Yus RM RM RM RM Balances on current accounts at 31 Jan 2023 3,100 (CR) 1.200 (DR) 2.100 (CR) 900 (CR) Drawings for the year 2023 24.000 20,000 15,000 18,000 Chargeable interest on each partner's drawings 1,800 1,200 1,100 1,000 Required: Prepare Profit and Loss Appropriation Account for the year ended 31 December 2023.
Question 2 Sam, Tana, Loo and Yus are in partnership for years with invested capital of RM60,000, RM60,000, RM70,000 and RM75,000 respectively. The partners have created an agreement on the following appropriation scheme i. Interest is to be allowed on capital and charged on drawings by the firm at 8% per annum. ii. The four partners are entitled to yearly salaries as below: Sam - RM8.000 Tana-RM7.000 Loo-RM9,000 and Yus-RM 10,000...3/3 BBM206/03 ii. Profit and losses are to be shared as follows: Sam-40% Tana-25 % Loo -20% Yus -15% During the year, RM5.000 as part of each partner's salaries was paid by the firm. For the financial year ended 31 December 2023, the partnership has earned a net profit of RM80, 300, after deducting an interest on loan from Yus of RM1,000. The interest was not yet paid. The following items have to be taken into account in preparing the Profit and Loss Appropriation Account and Current Account: Sam Tana Loo Yus RM RM RM RM Balances on current accounts at 31 Jan 2023 3,100 (CR) 1.200 (DR) 2.100 (CR) 900 (CR) Drawings for the year 2023 24.000 20,000 15,000 18,000 Chargeable interest on each partner's drawings 1,800 1,200 1,100 1,000 Required: Prepare Profit and Loss Appropriation Account for the year ended 31 December 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 2 Sam, Tana, Loo and Yus are in partnership for years with invested capital of RM60,000, RM60,000, RM70,000 and RM75,000 respectively. The partners have created an agreement on the following appropriation scheme
i. Interest is to be allowed on capital and charged on drawings by the firm at 8% per annum. ii. The four partners are entitled to yearly salaries as below: Sam - RM8.000 Tana-RM7.000 Loo-RM9,000 and Yus-RM
10,000...3/3 BBM206/03 ii. Profit and losses are to be shared as follows: Sam-40% Tana-25 % Loo -20% Yus -15% During the year, RM5.000 as part of each partner's salaries was paid by the firm. For the financial year
ended 31 December 2023, the partnership has earned a net profit of RM80, 300, after deducting an interest on loan from Yus of RM1,000. The interest was not yet paid. The following items have to be taken into account in
preparing the Profit and Loss Appropriation Account and Current Account: Sam Tana Loo Yus RM RM RM RM Balances on current accounts at 31 Jan 2023 3,100 (CR) 1.200 (DR) 2.100 (CR) 900 (CR) Drawings for the year
2023 24.000 20,000 15,000 18,000 Chargeable interest on each partner's drawings 1,800 1,200 1,100 1,000 Required: Prepare Profit and Loss Appropriation Account for the year ended 31 December 2023.
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