Question $2$

Sam, Tana, Loo and Yus are in partnership for years with invested capital of

RM$60,000,$ RM$60,000,$ RM$70,000$ and RM$75,000$ respectively. The partners have

created an agreement on the following appropriation scheme:

i$.$ Interest is to be allowed on capital and charged on drawings by the firm

at $8\%$ per annum.

ii$.$ The four partners are entitled to yearly salaries as below:

$$ Sam $$ RM$8,000$

$$ Tana $$ RM$7,000$

$$ Loo $$ RM$9,000$ and

$$ Yus $$ RM$10,000$

$..\mathrm{.}3/$

$3$ BBM$206/03$

iii. Profit and losses are to be shared as follows:

$$ Sam $40\%$

$$ Tana $25\%$

$$ Loo $20\%$

$$ Yus $15\%$

During the year, RM$5,000$ as part of each partner$$s salaries was paid by the firm.

For the financial year ended $31$ December $2023,$ the partnership has earned a net

profit of RM$80,300,$ after deducting an interest on loan from Yus of RM$1,000.$ The

interest was not yet paid.

The following items have to be taken$-$into account in preparing the Profit and Loss

Appropriation Account and Current Account:

Sam Tana Loo Yus

RM RM RM RM

Balances on current accounts at $31$ Jan

$2023$

$3,100$

$($CR$)$

$1,200$

$($DR$)$

$2,100$

$($CR$)$

$900$

$($CR$)$

Drawings for the year $202324,00020,00015,00018,000$

Chargeable interest on each partner$$s

drawings

$1,8001,2001,1001,000$

Required:

Prepare Profit and Loss Appropriation Account for the year ended $31$ December

$2023.(15$ marks$)$