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Rory, Sori, and Tory are REST partners. Each partner contributes RM50, 000 to start a business. There has been no additional capital investment since the
Rory, Sori, and Tory are REST partners. Each partner contributes RM50, 000 to start a business. There has been no additional capital investment since the REST partnership was established. 4 REST Partnership records show a profit of RM 310,000 for the year ended June 30, 2020, before considering the following agreements that have been reached: Interest on the initial capital balance at an annual rate of 10% Interest is charged at a fixed rate of 5% Tory gets RM10, 000 a month Rory provided a loan of RM 125,000 to REST Business on May 1, 2020. This loan charges 4% interest every year. The profit and loss are divided according to the ratio of 2: 3: 5 to Rory, Sorry and Torry respectively e Interest on the initial capital balance at an annual rate of 10% Interest is charged at a fixed rate of 5% Tory gets RM10, 000 a month Rory provided a loan of RM 125,000 to REST Business on May 1, 2020. This loan charges 4% interest every year. The profit and loss are divided according to the ratio of 2: 3: 5 to Rory, Sorry and Torry respectively The initial balance of partners' current accounts and the amount of withdrawals in the current period are as follows: Current account Take Rory 30,000 60,000 20,000 55,000 I'm sorry Conservative 40,000 25,000 Party Requirements: A Prepare a. Profit and loss segregated account b. Partner current account (fixed capital method) Owner's equity part of statement of financial position
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