QUESTION 1 RANDZ Partnership is in phone accessories business. Below is their business information taken from...

QUESTION 1

RANDZ Partnership is in phone accessories business. Below is their business information taken from the book of accounts for the ended 31 December 2017:

RM

Beginning capital:	Razak	20,000
	Zukuwan	40,000
Current account:	Razak	5,000
	Zukuwan	0
Partner’s drawings:	Razak	5,000
	Zukuwan	2,800
Annual Salaries:	Razak	0
	Zukuwan	2,000

Additional information:

The net profit for the year ended 31 December 2017 was RM28,000.
The interest on capital and interest on drawings was at 5% and 4% per annum respectively.
There was RM5,000 salaries payable to Zukuwan
The partners agreed to share profits and losses based on capital ratio.

REQUIRED:

Prepare the Profit and Loss Appropriation Account of RANDZ Partnership for the year ended 31 December 2017.

QUESTION 2

Nawab & Ahmad Co. are in toys business. Their individual investments in the business on 1 January 2016 were: Nawab RM80,000; Ahmad RM40,000. Interest should be allowed on capital at 7 percent per annum. For the year ended 31 December 2016, the net profit was RM50,000, and the partner’s drawings were: Nawab RM8,000; Ahmad RM9,000. They have agreed to share profits and losses equally. The partners entitled for annual salaries of: Nawab RM10,000; Ahmad RM14,000.

REQUIRED:

Prepare the profit and loss appropriation account and the partner’s current accounts for the year ended 31 December 2016.

Expert Solution

ekkarill92 answered 2 years ago

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