Adam, Banie and Saiful are partners sharing profit and losses in the ration 3:2:1 respectively. It was agreed between them that each partner will receive an interest on beginning capital balance of 10% per annum and will be charged interest on drawings at 6% per annum. As an active partner Saiful is to be paid monthly salary of RM1,800. The accounting period for the business ends at 31 December each year. On 30 September 2018, Banie decided to leave the partnership due to ill-health. A new partner, Dania was admitted into the partnership. The following terms were agreed upon with the changes:

Required: a) Goodwill account.(2 marks) b) Revaluation account.(3 marks) c) The partners capital in a columnar form.(6 marks) d) The current accounts in a columnar form.(6 marks) e) The Statement of Profit and Loss and Appropriation Accounts for the year ended 31 December 2018. (Pre and Post-Period). (13 marks)

MIDTERM.pdf - Adobe Acrobat Reader DC File Edit View Window Help Home Tools MIDTERM.pdf X A 4 /5 To Share the changes: 1. The assets of the partnership were to be revalued as follows: RM Freehold property 220,000 Office equipment 45,000 Inventories 12,000 2. Banie's current account balance was to be transferred to capital account. Of the amount owing to him, only RM30,000 was to be settled in cash and the remaining ias loan to partnership 3. Dania, the new partner would contribute RM50,000 cash which constitutes RM35,000 Capital and RM15,000 for her share of goodwill. Goodwill account is to be maintained in the books. The new profit sharing ratio for Adam, Saiful and Dania was 4:2:3 5. The provisions regarding interest on capital and interest on drawings remained unchanged. 6. No partner shall receive any salary. An extract of the partnership books showed the following balances as at 30 September 2018: 4. RM Freehold property at cost Less: Accumulated depreciation RM 200,000 (30,000) 170,000 Office equipment at cost Less: Accumulated depreciation Inventories 80,000 (25,000) 55,000 15,000 Activate Windows Go to Settings to activate Winpw 5. Type here to search e d E g 09:19 01-Jun-20 ^O ) MIDTERM.pdf - Adobe Acrobat Reader DC File Edit View Window Help Home Tools MIDTERM.pdf X During the year ended 31 December 2018, the partnership made a net profit before any appropriation of RM60,000 (after charging all expenses except depreciation of office equipment of RM2,500). Drawings made during the accounting period were as follows: Amount Adam Banie Date 1 January 2018 1 January 2018 1 January 2018 1 October 2018 6,000 4,000 7,000 3,000 Saiful Dania On 1 January 2018, the current account balances were as follows: Adam Capital account (RM) 50,000 30,000 20,000 Current account (RM) 15,000 13,000 9,000 Banie Saiful Required: a) Goodwill account. (2 marks) b) Revaluation account. (3 marks) c) The partners' capital in a columnar form. (6 marks) d) The current accounts in a columnar form. (6 marks) e) The Statement of Profit and Loss and Appropriation Accounts for the year ended 31 December 2018. (Pre and Post-Period). (13 marks) (30 marks Activate Windows Go to Settings to activate Windows. Type here to search j e e d AO 09:15 01-Jun-20 MIDTERM.pdf - Adobe Acrobat Reader DC File Edit View Window Help Home Tools MIDTERM.pdf X A 4 /5 To Share the changes: 1. The assets of the partnership were to be revalued as follows: RM Freehold property 220,000 Office equipment 45,000 Inventories 12,000 2. Banie's current account balance was to be transferred to capital account. Of the amount owing to him, only RM30,000 was to be settled in cash and the remaining ias loan to partnership 3. Dania, the new partner would contribute RM50,000 cash which constitutes RM35,000 Capital and RM15,000 for her share of goodwill. Goodwill account is to be maintained in the books. The new profit sharing ratio for Adam, Saiful and Dania was 4:2:3 5. The provisions regarding interest on capital and interest on drawings remained unchanged. 6. No partner shall receive any salary. An extract of the partnership books showed the following balances as at 30 September 2018: 4. RM Freehold property at cost Less: Accumulated depreciation RM 200,000 (30,000) 170,000 Office equipment at cost Less: Accumulated depreciation Inventories 80,000 (25,000) 55,000 15,000 Activate Windows Go to Settings to activate Winpw 5. Type here to search e d E g 09:19 01-Jun-20 ^O ) MIDTERM.pdf - Adobe Acrobat Reader DC File Edit View Window Help Home Tools MIDTERM.pdf X During the year ended 31 December 2018, the partnership made a net profit before any appropriation of RM60,000 (after charging all expenses except depreciation of office equipment of RM2,500). Drawings made during the accounting period were as follows: Amount Adam Banie Date 1 January 2018 1 January 2018 1 January 2018 1 October 2018 6,000 4,000 7,000 3,000 Saiful Dania On 1 January 2018, the current account balances were as follows: Adam Capital account (RM) 50,000 30,000 20,000 Current account (RM) 15,000 13,000 9,000 Banie Saiful Required: a) Goodwill account. (2 marks) b) Revaluation account. (3 marks) c) The partners' capital in a columnar form. (6 marks) d) The current accounts in a columnar form. (6 marks) e) The Statement of Profit and Loss and Appropriation Accounts for the year ended 31 December 2018. (Pre and Post-Period). (13 marks) (30 marks Activate Windows Go to Settings to activate Windows. Type here to search j e e d AO 09:15 01-Jun-20