Mustaqeem and Musfirah formed a partnership business named MUM Catering to provide catering services in Kubang Pasu. The following information was extracted from the partnership books of account as at 30 June 2019.

Capital Withdrawal Salary allowance per month Annual bonus

Mustaqeem Musfirah

RM80,000 RM40,000 RM10,000 RM3,000 - RM3,500 - RM5,000

Based on the partnership agreement, both partners agreed on the following percentage:

1. Interest on capital of 10% per annum.

2. Interest on drawings of 5% per annum.

3. Share profits or losses of the business based on the amounts of capital contributed.

Additional information:

1. Profit of the business for the year is RM75,000.

2. The partnership was established on 1 July 2018.

REQUIRED:

(a) Prepare the profit and loss appropriation for MUM Catering for the year ended 30June 2019.

(b) Prepare the partners current accounts for the year ended 30 June 2019

(c) Assume that MUM Catering partnership agreement does not specify the sharing ratio for profit or loss, what will be the amount of share of profit or loss obtained by Mustaqeem and Musfirah for the year ended 30 June 2019? Justify your answer.