In: Accounting
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:
REQUIRED:
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.