TUT_2_3_-Acctg_for_partnership_2018.docx - Tutorial...

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Tutorial : Accounting for Partnership Question 1 Additional information: (1) On 1 October 2014 Kim admitted Chan as a partner. (2) Goodwill was valued at RM120,000 but will not remain in the books of the partnership. (3) The profit sharing ratio was agreed at Kim 60% and Chan 40%. (4) Chan agreed to pay a cheque of RM160,000 to the partnership. In addition, he introduced equipment valued at RM325,000 and inventory valued at RM26,000. Required: 1. Prepare the capital accounts of Kim and Chan at 1 October 2014. 2. Prepare a statement of financial position for the partnership at 1 October 2014. 1
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Question 2 SOFP at 31 March 2010 2
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Required: a) Prepare the SOFP of the partnership at the start of business on 1 April 2010. As sole traders Aneeqa and Emilita had earned annual profits of RM16,000 and RM34,000 respectively. They expect the profits of the partnership to be 10% higher in the first year. Required b) Calculate the amount of income each partner has gained or lost by the creation of the partnership. State which partner has benefitted in terms of income. 3
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Question 3 (Changes in Partnership) Deeti and Neel have been in partnership for some years sharing profits and losses equally. Interest on capital has been at 5%. Depreciation on equipment has been provided monthly at a rate of 10% per annum on the straight line basis.
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  • Fall '19
  • Balance Sheet, Generally Accepted Accounting Principles, Cereal Berhad

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