1. Alam and Ousman established the partnership call A&O. Both of them agreed that the profit and loss will be divided 60:40.
   1. Alam invests RM20,000 cash, and Ousman contributes RM30,000 cash and equipment of RM10,000 in their partnership
   2. Alam is an active partner and received RM5,000 as a salary.
   3. At the end of the year each partner will received 10% interest based on the cash capital they contributed.
   4. Ousman withdraw goods from partnership for his personal used amounted RM10,000. And A&O charges 5% interest on drawing.
   5. During the year, A&O received the net income of RM30,000.

Required: State the journal entry for each of A&O Partnership transaction.

2. Briefly explain what partnership is? And please write simple agreement about partnership agreement

QUESTION 3

The following information was extracted from the books of Salih Shop.

	1 Jan 2018	31 Dec 2018
	RM	RM
Inventory	5,665	5,880
Account Receivable	4,080	5,115
Account Payable	3,775	4,120
Accrued Commission Received	105	160
Prepaid Insurance	120	180
Accrued Salary	390	450

Cash Book (Summary for the year ended 2018)

Receivable	RM	Payment	RM
Balance b/d	1,155	Account Payable	6,880
Account Receivable	10,090	Purchases	3,450
Sales	7,225	Salary	4,115
Commission	570	Insurance	525
Bad Debt Recovered	100	General Expenses	660
		Rent	1,200

Additional Information

1. On 31 May 2009, Salih Shop returned goods at RM280 to its supplier while its customer had returned goods at RM315
2. Discount received from supplier was RM460 and discount allowed to customer was RM395
3. Bad debt of RM220 was not recorded in any books
4. Encik Salih made drawings of RM500 in the form of goods for his family use.

Required:

1. Total sales
2. Total Purchase
3. Total Commission Income
4. Total Insurance Expenses
5. Total Salary Expenses