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SOALAN 2 Joey and Jasmine run a souvenir manufacturing company in Langkawi, Kedah. Their business has been registered under the Partnership Act 1961 under the
SOALAN 2 Joey and Jasmine run a souvenir manufacturing company in Langkawi, Kedah. Their business has been registered under the Partnership Act 1961 under the name Langkawi Souvenir Centre (LSC). During the year ended 31 March 2021, LSC achieved a net income of RM110,000. Joey's remaining capital as of 1 April 2020 was RM50,000 and Jasmine RM90,000. While there is a take-up of RM20,000 made by Jasmine during the period. Details of the partnership agreement between Joey and Jasmine are as follows: 1. Salaries of RM20.000 and RM36,000 respectively were paid to Joey and Jasmine. 2. Interest on capital is at the rate of 10% per annum on the initial balance of capital. 3. Profit and loss are divided equally. 4. The partnership uses variable capital methods to account for partner capital. Required: Prepare for Langkawi Souvenir Centre (LSC): a) The profit and loss segregation table for the year ended 31 March 2021. b) Capital Accounts on 31 March 2021
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