On 1 January 2020, there were two young men, Alex and Mohsin who formed a business registered as A M Partnership to produce electrical components Alex and Mohsin contributed capital RM40,000 and RM35,000 respectively The A M Partnership agreement states the following terms Alex and Mohsin shall receive annual salary amounting RM24,000 and RM30,000 respectively Interest on partners initial capital is 10 per annum Surplus of profit or loss shall be divided equally between partners Partnership uses fluctuating capital method to account their equity On 1 June 2020, Mohsin contributed additional capital a total of RM3,000 into the partnership Alex and Mohsin also withdrew cash for RM5,000 and RM2,000 respectively on 31 December 2020 The followings are some of the accounting information of A M Partnership on 31 December 2020 Required Prepare a Statement of Cost of Goods Manufactured for the year ended 31 December 2020 Prepare an Income Statement for the year ended 31 December 2020 Prepare a Schedule of Profit or Loss Division Prepare a Statement of Partnership Capital for the year ended 31 December 2020 Explain TWO (2) advantages and TWO (2) disadvantages of partnership as compared to corporation RM 4 800 3,400 2 100 28 000 4 100 28 200 Advertisment expense Depreciation expense Machine Depreciation expense Office equipments Direct labour Factories supplies used Indirect labour Inventories Direct material, 1 January Direct material, 31 December Work in process inventories, 1 January Work in process inventories, 31 December Finished inventories, 1 January Finished inventories, 31 December Factory miscellaneous expense Salary Factory supervisors Salary General office staff Discount on direct material purchased Direct material purchased Rental expense machine Rental expense office equipments Machine repairs Sales Sales return Salary Sales staff Factory utility Office utility 35,600 35,000 39,000 36,000 33 000 28,000 2 800 22,000 44 300 1,000 62,000 1 800 1,600 1,300 301,400 2,700 43,400 12,700 11,200

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On 1 January 2020, there were two young men, Alex and Mohsin who formed a business registered as A&M Partnership to produce electrical components. Alex

On 1 January 2020, there were two young men, Alex and Mohsin who formed a business registered as A&M Partnership to produce electrical components. Alex and Mohsin contributed capital RM40,000 and RM35,000 respectively. The A&M Partnership agreement states the following terms:

Alex and Mohsin shall receive annual salary amounting RM24,000 and RM30,000 respectively.
Interest on partners initial capital is 10% per annum.
Surplus of profit or loss shall be divided equally between partners.
Partnership uses fluctuating capital method to account their equity.

On 1 June 2020, Mohsin contributed additional capital a total of RM3,000 into the partnership. Alex and Mohsin also withdrew cash for RM5,000 and RM2,000 respectively on 31 December 2020. The followings are some of the accounting information of A&M Partnership on 31 December 2020:

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Required:

Prepare a Statement of Cost of Goods Manufactured for the year ended 31 December 2020.

Prepare an Income Statement for the year ended 31 December 2020.

Prepare a Schedule of Profit or Loss Division.

Prepare a Statement of Partnership Capital for the year ended 31 December 2020.

Explain TWO (2) advantages and TWO (2) disadvantages of partnership as compared to corporation.

RM 4.800 3,400 2.100 28.000 4.100 28.200 Advertisment expense Depreciation expense - Machine Depreciation expense - Office equipments Direct labour Factories supplies used Indirect labour Inventories: Direct material, 1 January Direct material, 31 December Work in process inventories, 1 January Work in process inventories, 31 December Finished inventories, 1 January Finished inventories, 31 December Factory miscellaneous expense Salary - Factory supervisors Salary - General office staff Discount on direct material purchased Direct material purchased Rental expense - machine Rental expense - office equipments Machine repairs Sales Sales return Salary - Sales staff Factory utility Office utility 35,600 35,000 39,000 36,000 33.000 28,000 2.800 22,000 44.300 1,000 62,000 1.800 1,600 1,300 301,400 2,700 43,400 12,700 11,200