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(11 marks) iii- On 1 January 2019, Bala, Tan and Syamil formed BTS Associates, a partnership that provides consultancy services. Bala invested RM120,000 in the
(11 marks) iii- On 1 January 2019, Bala, Tan and Syamil formed BTS Associates, a partnership that provides consultancy services. Bala invested RM120,000 in the partnership, Tan RM120,000 and Syamil RM280,000, respectively. All the partners have agreed the followings arrangement: 1. Bala will manage the office and work 40 hours per week in the office. Tan will work 20 hours per week in the office, and Syamil will not work. 2. Each partner withdrew 30 percent of his income distribution during 2019. If there was no income distribution to a partner, there were no withdrawals of cash. Required: Compute the partners' capital balances at the end of 2019 under the following condition: Continued... Net income is RM132,000 and the partnership agreement provides for 1. a salary of RM80,000 to Bala and RM80,000 to Tam 2. interest on beginning capital balances at the rate of 10% and 3. any remaining income or loss is to be shared by Bala 40%Ta35 and Syamil 25%. (Total: 25 marks)
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