Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please do it detail thank you On 1 January 2019. Bahrin, Ting and Siva formed BTS Associates, a partnership that provides consultancy services. Bahrin invested

please do it detail thank you image text in transcribed
On 1 January 2019. Bahrin, Ting and Siva formed BTS Associates, a partnership that provides consultancy services. Bahrin invested RM120,000 in the partnership. Ting RM120,000 and Siva RM280,000, respectively. All the partners have agreed the followings arrangement: 1. Bahrin will manage the office and work 40 hours per week in the office. Ting will work 20 hours per week in the office, and Siva will not work. 2. Each partner withdrew 30 percent of his income distribution during 2019. If there was no income distribution to a partner, there were no withdrawals of cash. Required: Compute the partners' capital balances at the end of 2019 under the following condition: Net income is RM132,000 and the partnership agreement provides for: 1. a salary of RM80,000 to Bahrin and RM80,000 to Ting, 2. interest on beginning capital balances at the rate of 10% and 3. any remaining income or loss is to be shared by Bahrin 40%, Ting 35%, and Siva 25%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume 2

Authors: John Wild, Ken Shaw, Barbara Chiappetta

21st Edition

0077716663, 978-0077716660

More Books

Students also viewed these Accounting questions