QUESTION 2

Salah & Betul Co. is a local delivery partnership founded on 1 January 2019. Ahmad Salah & Dilmurat Betul each contributed RM40,000 and RM20,000 respectively to start the business. Both partners have agreed to 10% percent per annum interest on their capital investment. In the first years operation, the partnership managed to record a net profit of RM25,000. The partnership has also endorsed an equal distribution for profit/loss sharing. During the year, they have both withdrawn RM5,000 each. In addition, Salah was entitled to an annual salary of RM5,000 while Betuls was RM7,000.

REQUIRED:

(a). Prepare the profit and loss appropriation account and the partners current accounts for the year ended 31 December 2019.