PARTNERSHIP ACCOUNTS

WHERE IS THE JUSTICE?

Justice League & Co, a partnership business owned by Batman and Robin involves in vigilante exercise in Selayang City. Below is the detail regarding the partnership as at 1 January 2021.

	Batman	Robin
Capital contribution (RM)	600,000	400,000
Salary per month	10,000	8,000
Vigilante allowance	1,000	800
Current account balance	24,000 (Cr)	5,000 (Cr)
Drawings	3,000	6,000
Loan from partnership	30,000	60,000

On one fine morning of April 1st, 2021, suddenly Superman The Man of Steel came flying to the Justice League in Selayang Baru and joined the partnership with a contribution of RM500,000. When asked about his salary, he just said he works for free. Batman and Robin felt like stupid as they received salary from the Justice League. During the Supermans tenure in the Justice League, he made a loan from the partnership for RM50,000 to sustain his life. He felt regretted that he did not take any salary from the partnership. He only received vigilante allowance of RM800 per month.

Later in early October, Wonder Woman came to Justice League Malaysia due to a prolonged COVID-19 pandemic caused by stupid evil Ministers. She contributed RM200,000 as her capital for the partnership. With a monthly salary of RM6,000 and no vigilante allowance, she worked day and night to save Malaysia from the horrible pandemic. At the end of the year, the accumulated drawings and loan made by her were RM18,000 and RM40,000 respectively. Only equipped with the slogan Kita Jaga Kita the Justice League were busy with their duties. More heroes are coming to Malaysia but the border has been closed and Batman said ENOUGH!!!.

In the partnership agreement, partners are charged with interest on loan made from the partnership at 10% flat. Interest on drawings is at 8% while the interest on capital contributed by each partner is only at 5%. The profit sharing ratio was agreed according to the capital contributed by each of them.

The Justice League business earned a profit of RM835,000 for the year 2021.

So now, there is a new strain of COVID-19 virus from India. Oh boy!

Required:

Prepare the following;

1. Profit and Loss Appropriation Account for the year ended 31 December 2021.

2. Current account for each partner at the year end.