Question

Instructions: You are required to set up a partnership where involve at least THREE (3) partners. The details should include: 1. Name and background of the business (location, product, partnership agreement: profit/loss sharing, interest on capital, interest on drawings, salary, loan and etc) 10m 2. Accounting period is for the year ended 31 December 2019 3. Assume that the business net income for the first year of operation is RM100,000 4. Journalize the transactions for the first month of operation • Interest on capital Drawings Interest on drawings Salary to partners Loan to partnership Interest on Loan Profit/Loss appropriation • 4. Prepare: . . • • Profit and Loss Appropriation account Capital Accounts(for partners) Current Accounts(for partners) Equity Section in Statement of Financial Position as at 31 Dec 2019 10m 3m 8m 4m

Answer 1

Journal entries credit Jan 31, 2019 Name of the account Debit Interest on capital al or RM 1500 To Partnu - ccurentak TO Partnu-y current al TO Partnu. I curentak (RM 200,000x0 -15% = RM 500) (for interest on capital) na RM 500 RM 500 RM 500 Jan3l 2019 Partner & ceuvent al Partnu. Y current Ak Partnu. I curent al По раt gle (for Drawings) RM 1000 RM 1000 RM 1000 RM 3000 Jan 31, 2019 Ru too RM 100 RM 100 Partnu-x curent ple Partnu-y current al s Partnu z ceurent ne! To interest on , drawing alo (RM 1000x 10 = CM 100) RM 300 Jan 31, 2019 PEL Appropriation ni RM 3000 TO Partnu x current al TO Parlnu-y current al TO Parlnu 2 curent Ak (For salaries). Signature RM 1000 RM 1000 RM 1000

Al PEL Appropriation Profit (Closs) for the RM 97,000 period CRM 100,000)–(RM 250x1201 Leur Partner salaries RM 36,000 (RM 3000x12) roles: Interest on Partners | RM 18,000 Capital Alc (RM 1500x12) Adds Interest on RM 3600 Drawings XK (RM Boox (2) Balance in appropriation RM 46,600 Partnu-x RM 15,533 Partnu-y RM 15,533 Partnu-2 RM 15,534

Partnu-x capital Jan 1, 2019 ACC By cash RM 100,000 To Bal old 81100,ood RM 100,000 RM 100,ooo Partnu-y capital Ale Jan 1, By cash 2014 ou TO Bal cld Ral 109,000 RM 100,000 RM 200,000 RM 100,000 Partnu-2 capital Alc Jani, 2014 cash KM 100,000 To Bal old &M100,ood RM 100,000 PM 100,000

Partnu-x current Account interest on RM 5o Jon 31 RU Jan 31,2019 Rank Alem 1ooo 2019 Capital Al capital a (same Enery for Ant-on prawings RM 100 Covery month, RM 1000 By salaries BY PEL Appr.Al RM3187 Balance E 19 on capitalak aminini RM 500 RM 6000+RM12,000 + RM31,8550-12M 12000 - RM 1200 = RM36657 Partners y current account be Jan 31, By interest Jom 31,2019 Rank Al RM 1000 RM 500 2019 " Int-on drawing RM 100 (sami enery - Every Month End) By salaris RM 1000 By P&L APPAK RM 81850 * same as above Partnu 2 account ceuvent Jan 31, 2019 Jan 31, 2019 Bank Al RM 1000 By interest RM 500 font-on drawings Rulod on capital Alc (same entry - Every month End) By salaris RM 1000 | BY PEL APPAI RM31850 same as above.

stalement of financial position as at Dec 31, 2019 Partners Capital Account Partnu-x Partnu-y Parlnu 2 RM 100,000 RM 100,000 RM 100,000 Partnus current account. Partny-x Partnu-y Partnu- 2 RM 36,650 RM 36,650 RM 36,650 Total Excity RM 409 950