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helpSECTION B This section requires students to prepare the current accounts, capital accounts and appropriation statement of profit or loss for partnership business. You are
helpSECTION B
This section requires students to prepare the current accounts, capital accounts and appropriation
statement of profit or loss for partnership business. You are given the business's unadjusted
account balances together with several related information unique to each group to complete the
requirements.
The terms agreed by partners prior to the commencement of the partnership
business as follows:
At the beginning of the accounting year, the partners' current and capital balances were:
Partner A has advanced RM as a loan to the partnership on January The
interest on loan from the partner is still outstanding. The interest on loan is to be treated
as an expense.
Depreciation on machinery at will be charged on annual basis using straight line
method. The following balances were extracted from the books of partnership as at the
end of the accounting period:
Each partner is entitled to receive RM as an annual salary.
The partnership adopts the fixed capital structure in maintaining its partners accounts.
Notes: Each group is required to use other related partnership business information unique to
each group provided in Table to complete the requirements.
Required:
a Current account
b Capital account
c Appropriation Statement of Profit or Loss for the year
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