QUESTION 1

Syatila and Husna have a partnership agreement which includes the following provisions regarding sharing of net income or net loss:

• A salary allowance of RM 36,000 to Husna
• Each partner is allowed an interest of 6% on beginning capital balances.
• The reminder to be divided 65% to Syatila and 35% to Husna.
• During the year, Husna made an additional cash contribution of RM 9,000.

The capital balances on January 1, 2020 for Syatila and Husna were RM 80,000 and RM 45,000 respectively. The net income for the year was RM 76,500.

Required:

a. Prepare a schedule showing division of net income.

b. Prepare the partners capital statement.

(20 Marks)