Khong and Heng are in partnership and the trial balance extracted from their books on 31 March 2012 is shown below. Question 1 Cr (RM) Dr (RM) Particulars 5,000 5,000 Capital Account: Khong Heng Current Account: Khong 400 200 Heng Drawings: Khong Heng Purchases and Sales 600 1,000 8,400 2,400 16,000 Wages Insurance 120 Discount 80 60 Other expenses 140 Debtors and Creditors 3,500 4,000 Provision for doubtful debts 150 Stock at 1 April 2011 1,800 Cash at bank 11,410 30,130 30,130 Additional Information: i Stock at 31 March 2012 is RM2,500. Provision for doubtful debt is to increase to RM200. Wages outstanding at 31 March 2012 is RM400. Interest on capital is allowed at 5 % per annum and interest on drawings is charged at 8 % per annum. V Khong is entitled to a salary of RM1,000 per annum and Heng RM2,000 PER ANNUM. vi. The profit sharing ratio is Khong 2/3 and Heng 1/3. 12 Required: Prepare the following: Income Statement b Profit and Loss Appropriation Account CBalance Sheet