Question 2 Rahim and Chong have prepared their draft accounts for the year ended 30 April 2022. The draft accounts report a gross profit of RM157,846 and a net profit of RM51,024. Cash payments of RM15,000 to each partner have been included in expenses. At 1 May 2021 the balances on the partners capital and current accounts were: Rahim Chong RM RM Capital account 125,000 (credit) 70,000 (credit) Current account 34,568 (credit) 23,741 (debit) The partnership agreement includes the following terms: Share of profits and losses 2/3 1/3 Salary 18,000 12,000 Interest on capital (per annum). 8% 8% The partnership agreement also states that the partners capital account balances will remain fixed, and that the balances on the partners current accounts should not be included in the calculation of interest on capital. Required: Calculate:

a. the correct gross profit and net profit to be reported in the partnership profit and loss account for the year ended 30 April 2022. (2 marks)

b. the amount of profit which will be credited to each partners current account for the year to 30 April 2022. (8 marks)

c. the balance on each partners current account at 30 April 2022. (5 marks)