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John, Lee and Tony are in partnership, preparing accounts to 31 October each year. Their partnership agreement states that: (i) The partners are entitled to
John, Lee and Tony are in partnership, preparing accounts to 31 October each year. Their partnership agreement states that: (i) The partners are entitled to 5% per annum interest on their opening capital accounts. No interest is allowed (or charged) on current account balances. 5 (ii) Interest is charged on the partners' drawings at 7% per annum. Their drawings during the year to 31 October 2022 were as follows: (iii) Partners' annual salaries are RM6,000 and RM 12,000 for Lee and Tony respectively. (iv) Remaining profits and losses are shared between John, Lee and Tony in the ratio of 5:4:1. (v) The partnership's net profit for the year to 31 October 2021 is RM81,961. Required: Prepare the partners appropriation account for the year ended 31 October 2022. (15 marks)
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