Question
Aqeel, Aseem and Adeeb are in partnership, sharing profits and losses in the ratio of 3/5, 1/5 and 1/5 respectively. Their partnership agreement provides that:
Aqeel, Aseem and Adeeb are in partnership, sharing profits and losses in the ratio of 3/5, 1/5 and 1/5 respectively. Their partnership agreement provides that:
(1) Total balances of the capital account as at 1 June 2020 is RM200,000 allocated proportionately according to the ratio of 5:3:2.
(2) Current account balances as at 1 June 2020 for Aqeel, Aseem and Adeeb are RM18,000, RM9,500 and RM8,200 respectively.
(3) Drawings by the partners during the year were: Aqeel RM40,500; Aseem RM30,800; and Adeeb RM15,600.
(4) Interest on capital is to be allowed to all partners at 10% per annum.
(5) Interest is to be charged on all drawings at 5% per annum.
(6) Salaries to be credited were: Aqeel RM20,000; Aseem RM25,000; and Adeeb RM30,000.
(7) The companys net profit before dealing with partners interest and salary for the year ended 31 May 2021 was RM155,500.
Prepare the profit and loss appropriation account for the year ended 31 May 2021.(ANSWER IN HURRY)
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