Question 3 Basir & Same set up a trading partnership, BS Trading. They share the balance of profits and losses in the proportion 3:2 respectively. As at 30 September 2019, the following has been extracted from the books of BS Trading. Additional information: i) RM10,000 is to be transferred from Basir’s capital account to a newly opened Basir loan account on 1 July 2019. Interest at 10% per annum on the loan is to be credited to Basir. ii) Sam is to be credited with a salary at the rate of RM12,000 per annum from 1 July 2019. iii) Information for stock in hand at 30 September 2018 as follow: Cost RM33,500 Realizable Value RM32,000 iv) Telephone charges accrued due at 30 September 2019 amounted to RM400 and rent of RM60 prepaid at that date. v) During the year ended 30 September 2019, Sam has taken goods costing RM1,000 for his own use from the total purchases. vi) Depreciation is to be provided at the following annual rates on straight line basis: Fixture & fittings 10% Motor vehicles 20% vii)It has been decided that the provision for doubtful debt be maintained at RM300 for the year ended 30 September 2019. Required: a) Prepared statement of Profit & Loss Appropriation for year ended 30 September 2019. b) Prepare statement of financial position as at 30 September 2019.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question 3
Basir & Same set up a trading partnership, BS Trading. They share the balance of profits and
losses in the proportion 3:2 respectively.
As at 30 September 2019, the following has been extracted from the books of BS Trading.
Additional information:
i) RM10,000 is to be transferred from Basir’s capital account to a newly opened Basir
loan account on 1 July 2019. Interest at 10% per annum on the loan is to be credited to
Basir.
ii) Sam is to be credited with a salary at the rate of RM12,000 per annum from 1 July 2019.
iii) Information for stock in hand at 30 September 2018 as follow:
Cost RM33,500
Realizable Value RM32,000
iv) Telephone charges accrued due at 30 September 2019 amounted to RM400 and rent of
RM60 prepaid at that date.
v) During the year ended 30 September 2019, Sam has taken goods costing RM1,000 for
his own use from the total purchases.
vi)
Fixture & fittings 10%
Motor vehicles 20%
vii)It has been decided that the provision for doubtful debt be maintained at RM300 for the
year ended 30 September 2019.
Required:
a) Prepared statement of Profit & Loss Appropriation for year ended 30 September 2019.
b) Prepare statement of financial position as at 30 September 2019.
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