(Subjective) (Capital & Current Accounts, Profit And Loss Appropriation Account.) Chong and Loh were in partnership trading sharing profits and losses in the ratio 3:2 respectively. They agreed to allow interest on capitals at 5% per annum and to charge interest on drawings at a rate of 10% per annum. Chong was the partnership's manager and for his services he was credited with a salary of RM4,000 per annum. Chong had guaranteed Loh a minimum annual income of RM3,000, after sharing partnership profits and before deducting interest on drawings. During the year ended 30 April 1988, the net profit of the partnership trading was RM 10,000 and the partners' drawings were: Chong RM 500 Loh RM 900 On 31 December 1987 Chong withdrew RM1,200 from his Capital Account and Loh put in a similar amount to his Capital Account. The following were the balances of the partners' accounts at 1 May 1987: Capital Accounts Current Accounts Chong RM6,000(Cr) RM470(Cr) 5660 Loh RM3, 600(Cr) RM510(Cr) 3396,226 < (1) the partnership's Profit And Loss Appropriation Account for the year ended 30 April 1988; (2) the partners' Capital and Current Accounts as at 30 April 1988.
(Subjective) (Capital & Current Accounts, Profit And Loss Appropriation Account.) Chong and Loh were in partnership trading sharing profits and losses in the ratio 3:2 respectively. They agreed to allow interest on capitals at 5% per annum and to charge interest on drawings at a rate of 10% per annum. Chong was the partnership's manager and for his services he was credited with a salary of RM4,000 per annum. Chong had guaranteed Loh a minimum annual income of RM3,000, after sharing partnership profits and before deducting interest on drawings. During the year ended 30 April 1988, the net profit of the partnership trading was RM 10,000 and the partners' drawings were: Chong RM 500 Loh RM 900 On 31 December 1987 Chong withdrew RM1,200 from his Capital Account and Loh put in a similar amount to his Capital Account. The following were the balances of the partners' accounts at 1 May 1987: Capital Accounts Current Accounts Chong RM6,000(Cr) RM470(Cr) 5660 Loh RM3, 600(Cr) RM510(Cr) 3396,226 < (1) the partnership's Profit And Loss Appropriation Account for the year ended 30 April 1988; (2) the partners' Capital and Current Accounts as at 30 April 1988.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(Subjective) (Capital & Current Accounts, Profit And Loss Appropriation Account.) Chong and Loh were in
partnership trading sharing profits and losses in the ratio 3:2 respectively. They agreed to allow interest on
capitals at 5% per annum and to charge interest on drawings at a rate of 10% per annum. Chong was the
partnership's manager and for his services he was credited with a salary of RM4,000 per annum. Chong
had guaranteed Loh a minimum annual income of RM3,000, after sharing partnership profits and before
deducting interest on drawings. During the year ended 30 April 1988, the net profit of the partnership
trading was RM 10,000 and the partners' drawings were: Chong RM 500 Loh RM 900 On 31 December
1987 Chong withdrew RM1,200 from his Capital Account and Loh put in a similar amount to his Capital
Account. The following were the balances of the partners' accounts at 1 May 1987: Capital Accounts
Current Accounts Chong RM6, 000(Cr) RM470(Cr) 5660 Loh RM3, 600(Cr) RM510(Cr) 3396,226 (1) the
partnership's Profit And Loss Appropriation Account for the year ended 30 April 1988; (2) the partners'
Capital and Current Accounts as at 30 April 1988.
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