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Q1 Amir and Basir started sharing business on 1 July 2019. The capital contributed is RM9,600 and RM7,200 respectively. They have agreed to divide the

Q1

Amir and Basir started sharing business on 1 July 2019. The capital contributed is RM9,600 and RM7,200 respectively. They have agreed to divide the profits and their losses according to their capital contribution ratio. Each year the salary is paid to Amir is RM800. Interest on capital is 10% and interest on withdrawals is 5%. The account balances in the Trial Balance as at 30 June 2020 are as follows:

Debit

Credit

Capital Account

Amir

9600

Basri

7200

Withradwal

Amir

2800

Basri

3600

Vehicle

3500

Purchase

50940

Sales

64040

Non Receivable Account

4356

Payable Account

1100

Accounts Payable - not Mr Tony's trade

3500

Premise

10000

Furniture and fittings

1724

Bank

764

Rental

4848

Insurance

1560

Advertisement

148

Incoming transport

208

Transport out

105

Cash discount

184

217

Bad debts

152

Utilities

688

Incoming returns

50

General expenses

30

85657

85657

Additional information:

1. Stock as at 30 June 2020 RM 4,052

2. Debt to advertising agent RM20

3. Insurance is a payment for half a year starting September 1, 2019

4. The provision for bad debts must be adjusted to RM75

5. The vehicle was purchased on 1 January 2019 on credit from Mr Tony. Depreciation rate

the vehicle is 10% on the cost of assets per annum.

6. Fittings and furniture are expected to have an age of 6 years, scrap value

in the sixth year is RM200

7. Utility unpaid is RM65

You are required to provide:

a. Trading and Profit and Loss Account for the year ended 30 June 2020 for

partnership of Amir and Basri

b. Profit and Loss Separation Account for the year ended 30 June 2020

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