Answered step by step
Verified Expert Solution
Question
1 Approved Answer
5 In the last quarter of the accounting year ended 31 March 2021, Kalsom Bibie Business (PKB) earned a net income of RM80,000. Kalsom's capital
5 In the last quarter of the accounting year ended 31 March 2021, Kalsom Bibie Business (PKB) earned a net income of RM80,000. Kalsom's capital balance as at 1 January 2021 is RM60,000 and Bibie RM80,000. A withdrawal of RM10,000 was made by Bibie during the quarter. Details of the agreement between them are given as follows: 1. A salary of RM4,000 per month is allowed for Kalsom and RM8,000 per month for Bibie. 2. Capital interest at the rate of 10% per annum on the initial balance of capital. 3. Interest on 3% withdrawals is charged. 4. Profit and loss are divided equally. 5. The CCP adopts a changed capital system. Be required: Prepare for CCP business: a) Profit and loss segregation schedule for 3 months ended 31 March 2021. b) Closing entry to record profit and loss distribution and take-up as at 31 March 2021. c) Partner Capital Statement for the 3 months ended 31 March 2021
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started