QUESTION 1

4 DARA Partnership is an on-line women accessories business. The business information taken from the book of accounts for the year ended 31 December 2019:

RM

Beginning capital:	Mazlina	30,000
	Senlily	30,000
	Angela	20,000
	Bingbang	40,000
Current account:	Mazlina	20,000
	Senlily	30,000
	Angela	10,000
	Bingbang	40,000
Partners drawings:	Mazlina	10,000
	Angela	10,000
Annual Salaries:	Mazlina	5,000
	Senlily	5,000

Additional information:

1. The net profit for the year ended 31 December 2019 was RM120,000.
2. The interest on capital and interest on drawings was at 5% and 4% per annum respectively.
3. There was RM5,000 salaries payable to Senlily
4. The partners agreed to share profits and losses based on capital ratio.

REQUIRED:

(a) Prepare the Profit and Loss Appropriation Account of 4 DARA Partnership for the year ended 31 December 2019.

(b) Explain any THREE (3) situations whereby this partnership can be dissolved

(c) Explain the concept of separate but non-legal entities in partnership.