CONFIDENTIAL

GUCIJAN-APR22/DEFA332/S1

SECTION B: Please answer only ONE (1) question in this section.

QUESTION FOUR (4)

Aminah, Ah ling and Anita plan to enter into a partnership business Triple A Corporation, by

investing RM40,000, RM50,000 and RM30,000 respectively. They have agreed on everything

but how to divide the profits. Calculate each partner's share of the profit under each of the

following independent assumptions and state the journal entry.

(a) If the first year's net income of Triple A Corporation is RM60,000 and they cannot

agree, how should the profits be divided?

(b) On the second year Aminah, Ah ling and Anita come to the agreement to distribute

the profit based on the end-of-year capital balance for the first 80,000 and any

reminder equally divided. Let's assume the second year net income is RM 110,000.

(c) On the third year Aminah, Ah ling and Anita come to the agreement to change their

income allocation agreement again. The total ending capital amounted 140,000 and

the Net income RM179,800. The plan is as follows:

(i)

Salary allowance allocation Amina RM40,000; Ah ling RM20,000; Sammy

RM80,000.

10% of end-of-year capital balance

The remaining balance (positive or negative) to be shared equally.

(30 Marks)

COPYRIGHT RESERVED

CONFIDENTIAL

CONFIDENTIAL GUCIJAN-APR 22/DEFA332/81 SECTION B: Please answer only ONE (1) question in this section QUESTION FOUR (4) Aminah, Ah ling and Anita plan to enter into a partnership business Triple A Corporation, by investing RM40,000, RM50,000 and RM30,000 respectively. They have agreed on everything but how to divide the profits. Calculate each partner's share of the profit under each of the following independent assumptions and state the journal entry. (a) If the first year's net income of Triple A Corporation is RM60,000 and they cannot agree, how should the profits be divided? (b) On the second year Aminah, Ah ling and Anita come to the agreement to distribute the profit based on the end-of-year capital balance for the first 80,000 and any reminder equally divided. Let's assume the second year net income is RM 110,000 (e) On the third year Aminah, Ah ling and Anita come to the agreement to change their income allocation agreement again. The total ending capital amounted 140,000 and the Net income RM 179,800. The plan is as follows: 0 Salary allowance allocation Aminah RM40,000. Ah ling RM20,000; Sammy RM80,000 10% of end-of-year capital balance (1) The remaining balance (positive or negative) to be shared equally, (30 Marks) COPYRIGHT RESERVED CONFIDENTIAL