Question
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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