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:

c. Partners Capital Account using the variable capital method for the year

ends June 30, 2020

d. Balance Sheet as of June 30, 2020