SUBJECT NAME: BUSINESS ACCOUNTING

Q2. Zafran, Zayyan and Zakwan are in partnership, sharing profits and losses in the ratio of 2/9,1/3 and 4/9 respectively. The partnership agreement provides that: (1) Interest on capital is to be allowed to all partners at 10% per annum. 02. (Continued) (2) Interest is to be charged on all drawings at 5% per annum. Zafran and Zayyan are entitled to a salary of RM15,000 and RM9,000 respectively (3) The capital and current accounts for the partners as at 1 June 2019 are as follows: Zafran Zayyan Zakwan Capital account (RM) 60,000 Cr 40,000 Cr 20,000 Cr Current account (RM) 16,000 Cr 14.000 Cr 12.000 Cr (5) Drawings by the partners during the year were: Zafran RM6,000; Zayyan RM4,000; and Zakwan RM2,000. (6) The company's net profit before dealing with partners' interest or salary for the year ended 31 May 2020 was RM60,600. REQUIRED: Prepare the following accounts for the year ended 31 May 2020: (a) The profit and loss appropriation account (12 marks) (b) The partners' current account. (10 marks) [Total: 22 marks]