Question 1 A, B and C are partners in a partnership. The trial balance of the partnership as at 31 December 2020 was as follows: Debit (RM) Credit (RM) 65,000 25,965 3,750 4,500 8,250 31,750 23,100 4,500 60,000 Gross profit Salaries General expenses Insurance Account payable Account receivable Office equipment at cost Provision for depreciation - office equipment Motor vehicle at cost Provision for depreciation - motor vehicles Bank Loan from A Provision for doubtful debts Capital accounts: A B Current accounts: A B 2,750 84,000 60,000 500 35,000 25,000 20,000 5,100 3,965 3,000 233,065 233,065 The partnership agreement states the following: 1. A and B are both entitled to salaries of RM6,000 per annum. 2. Interest of 8% per annum will be paid on capital. 3. Interest of 6% per annum will be charged on partner's drawings. 4. Profit and loss will be shared as follows: A 12 B 14 14 Additional information: 1. Insurance prepaid amounted to RM800. 2. Accrued general expenses amounted to RM1,200. 3. Depreciation of non-current assets is to be provided as follows: Office equipment 10% per annum on cost Motor vehicles 20% per annum on cost 4. It was decided to adjust provision for doubtful debts by 2% of the remaining accounts receivable. 5. The following cash drawings have been made by partners but not recorded: A RM12,500 1 May 2020 B RM15,000 1 July 2020 RM5,000 1 October 2020 6. Interest on loan from A is 9% per annum and has not been paid. 7. Salaries to A and B have not been paid. Required: Prepare; (a) A statement of profit and loss for the year ended 31 December 2020. (5.5 marks) (b) A statement of appropriation for the year ended 31 December 2020. (9 marks) (c) Current accounts for the partners. (10.5 marks) [Total: 25 Marks]