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Part B (15 marks) Fatah, Malini and Leong runs a business as a partnership. Their partnership agreement states: 1. Profit or loss is shared as
Part B (15 marks) Fatah, Malini and Leong runs a business as a partnership. Their partnership agreement states: 1. Profit or loss is shared as 4: 3:3 ratio for Fatah, Malini and Leong. 2. Fatah and Leong will receive salary of RM5,500 per month, while Malini will receive slaary of RM4,500 per month. 3. Interest on drawings is chargeable at 3% per year. 4. Partners will receive interest on capital of 8% per year based on the beginning capital. 5. All decisions must be made on based on agreement of all partners. The following are the balances of selected accounts for the year ended 31 July 2020. Current account 52,740 Fatah Malini Leong 43,200 (13,080) Net profit of the current year 430,400 Drawings account Fatah 24,000 Malini 16,000 Leong 15,000 Required: Required: a) Prepare the Division of Net Income Schedule for the year ended 31 July 2020. (6 marks) b) Prepare the current accounts of the partners at 31 July 2020. (6 marks) c) Prepare the owners' equity section of the Statement of Financial Position at 31 July 2020
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