please use Excel to answer questions

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:

i.

Alex and Mohsin shall receive annual salary amounting RM24,000 and RM30,000

respectively.

ii.

Interest on partners initial capital is 10% per annum.

iii.

Surplus of profit or loss shall be divided equally between partners.

iv.

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:

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

RM

4,800

3,400

2,100

28,000

4,100

28,200

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

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.