Question 2 Rafflesia Spa Essentials (RSE), a wholesale and retail unit of Rafflesia Wellness Sdn Bhd opened officially for business on 1 January 2009 at Warisan Square, Kota Kinabalu, Sabah. RSE aspires to be a one-stop wholesale and retail spa. It also targets to become a preferred choice destination for individual shoppers looking for typical spa products such as aromatherapy, natural bath gel, body scrubs and lotion, face masks, essential and fragrance oils. The spa products are sold under the company's very own label, Rafflesia, a registered trademark owned by RSE. RSE entered into a Musharakah Mutanaqisah contract with HSBC Amanah on January 2015 to expand its business. The total capital for the partnership was $320,000 of which 70% was supplied by the bank. HSBC Ananah's capital contribution is made up of a property valued $124,000. The book value of the property was $140,000. In addition, the bank contributed monetary capital of $80,000 and spa equipments with a value of $20,000. RSE has a very good team of employees and is able to attract a lot of customers. Based on the skills and reputation that RSE possesses, HSBC Amanah agreed that, should there be a profit, RSE will get 12% of thc profit for managing the partnership. The remaining profit is then divided between RSE and HSBC Amanah in the ratio of 40:60 respectively. It was also agreed that RSF would gradually purchase the bank's share in the partnership. For the year ending 31" December 2015, the partnership made a profit of $76,000. The bank's share of profit was settled on 25 March 2016. In the beginning of 2011, RSE purchased 25% of the bank's share in the partnership for $72,000. 305 a In the middle of 2016, there was a fire in RSE property. As a result, RSE suffered a loss amounting to $40,000. At the end of 2016, RSE also agreed to purchase another 25% of the remaining share of the partnership from HSBC Amanah for $32,000. In addition, HSBC Amanah made a provision for loss equal to 20% of the balance of the Musharakah Mutanaqisah account. Required a. Journal entries for the bank for 2015 and 2016. h. An extract of Income Statement for che year ending 31" December 2015 and 2016 An extract of the Statement of Financial Position as at 31" December 2015 and 2016. c. Question 2 Rafflesia Spa Essentials (RSE), a wholesale and retail unit of Rafflesia Wellness Sdn Bhd opened officially for business on 1 January 2009 at Warisan Square, Kota Kinabalu, Sabah. RSE aspires to be a one-stop wholesale and retail spa. It also targets to become a preferred choice destination for individual shoppers looking for typical spa products such as aromatherapy, natural bath gel, body scrubs and lotion, face masks, essential and fragrance oils. The spa products are sold under the company's very own label, Rafflesia, a registered trademark owned by RSE. RSE entered into a Musharakah Mutanaqisah contract with HSBC Amanah on January 2015 to expand its business. The total capital for the partnership was $320,000 of which 70% was supplied by the bank. HSBC Ananah's capital contribution is made up of a property valued $124,000. The book value of the property was $140,000. In addition, the bank contributed monetary capital of $80,000 and spa equipments with a value of $20,000. RSE has a very good team of employees and is able to attract a lot of customers. Based on the skills and reputation that RSE possesses, HSBC Amanah agreed that, should there be a profit, RSE will get 12% of thc profit for managing the partnership. The remaining profit is then divided between RSE and HSBC Amanah in the ratio of 40:60 respectively. It was also agreed that RSF would gradually purchase the bank's share in the partnership. For the year ending 31" December 2015, the partnership made a profit of $76,000. The bank's share of profit was settled on 25 March 2016. In the beginning of 2011, RSE purchased 25% of the bank's share in the partnership for $72,000. 305 a In the middle of 2016, there was a fire in RSE property. As a result, RSE suffered a loss amounting to $40,000. At the end of 2016, RSE also agreed to purchase another 25% of the remaining share of the partnership from HSBC Amanah for $32,000. In addition, HSBC Amanah made a provision for loss equal to 20% of the balance of the Musharakah Mutanaqisah account. Required a. Journal entries for the bank for 2015 and 2016. h. An extract of Income Statement for che year ending 31" December 2015 and 2016 An extract of the Statement of Financial Position as at 31" December 2015 and 2016. c
