QUESTION 4JUNE 2018 QUESTION 4Alia and Alisa are partners operating a bakery shop. The business started itsoperation on 1 January 2016 and the partnership agreements are as follows:a.Partners to share profit or loss in the ratio of 1:1.b.Each partner is entitled to an interest on opening capital of 6% per annum.c.Interest will be charged on drawings at 5% per annum.d.Each partner to receive salary of RM1,500 per month.e.Partner is entitled to an interest of 10% per annum on any advances madeto the business.f.Alisa is to receive minimum guaranteed profit of RM10,000 annually.The balances of the partners’ capital account and current account as at 1 January2017 were as follows:Opening Capitalaccount(RM)Currentaccount(RM)Alia35,0002,350Alisa15,0002,500The following transactions took place during the year:1.On 1 April 2017, Alia made a cash advance to the business amountingRM20,000. This additional fund is required to finance the businessexpansion plan. 2.Alia had utilised all of her salary received for twelve months and Alisa hadutilised her salary received until November 2017.
COMPILATION OF FINAL EXAMNINATION QUESTIONS – ACC4063.Partners have made some withdrawals during the year, Alisa withdrewgoods twice on 1 May 2017 and 1 July 2017 amounting RM700 and 850respectively and Alia made cash withdrawal of RM1,000 on 1 June 2017.4.The business reported a net profit of RM61,500 for the year ended 2017.Required:a.The Profit or Loss Appropriation Statement for the year ended 31December 2017.(8 marks)b.Partners’ capital account and partners’ current account for the year ended31 December 2017.(5 marks)c.State two (2) limitations of a partnership business.(2 marks)Note 1:Calculate to the nearest RM. (Total: 15 marks)JAN 2018 QUESTION 4 Amir and Ammar are in partnership business sharing the profit or loss at the ratioof 2:1. The details of their capital and current account balances as at 1 January2017 were as follows:Capital Account (RM)Current Account (RM)Amir162,00018,000Ammar90,0009,000The partnership agreement provides the following matters:a.Interest of 6% per annum is to be allowed on closing capital balances.b.Interest at 10% per annum is to be charged on drawings.c.Ammar is entitled to a monthly salary of RM3,750.Additional information:i.On 1 January 2017, the partners agreed that Amir’s initial capital is to bereduced by RM60,000 in which the amount being transferred to a loanaccount bearing an interest rate of 8% per annum. In addition, Amir isguaranteed a minimum profit of RM28,000 per annum. ii.On 31 August 2017, Amir withdrew RM3,600 cash from the partnership’sbank account for his own use. One month later, Ammar took goods worthRM1,440 from the partnership for his personal consumption.iii.The net profit for the year ending 31 December 2017 was RM102,980.Required:a.The Appropriation Statement for the year ended 31 December 2017.(8marks)b.Illustrate partners’ fluctuating capital account for the year ended 31December 2017.
COMPILATION OF FINAL EXAMNINATION QUESTIONS – ACC406(5marks)