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    Partnership 230123 212622

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    NUR AFIFAH MADNAN
    Lan, Zaza, and Hasdi operate a children's shoe business called Lazadi Enterprise. For the year ended December 31, 2015: 1) The business earned a net profit of RM78,600 excluding depreciation of RM5,500. Profits and losses are shared according to the Partnership Act of 1961. 2) Hasdi provided a RM20,000 loan to the business at 10% annual interest. Zaza contributed an additional RM10,000 in capital. 3) Each partner receives a RM1,500 monthly salary, though Lan only took RM15,000 of his salary for the year. Lan and Hasdi also took partnership drawings.

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    Partnership 230123 212622

    Uploaded by

    NUR AFIFAH MADNAN
    42 views4 pages
    Lan, Zaza, and Hasdi operate a children's shoe business called Lazadi Enterprise. For the year ended December 31, 2015: 1) The business earned a net profit of RM78,600 excluding depreciation of RM5,500. Profits and losses are shared according to the Partnership Act of 1961. 2) Hasdi provided a RM20,000 loan to the business at 10% annual interest. Zaza contributed an additional RM10,000 in capital. 3) Each partner receives a RM1,500 monthly salary, though Lan only took RM15,000 of his salary for the year. Lan and Hasdi also took partnership drawings.

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    ACC407

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    Partnership_230123_212622

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    Lan, Zaza, and Hasdi operate a children's shoe business called Lazadi Enterprise. For the year ended December 31, 2015: 1) The business earned a net profit of RM78,600 excluding depreciation of RM5,500. Profits and losses are shared according to the Partnership Act of 1961. 2) Hasdi provided a RM20,000 loan to the business at 10% annual interest. Zaza contributed an additional RM10,000 in capital. 3) Each partner receives a RM1,500 monthly salary, though Lan only took RM15,000 of his salary for the year. Lan and Hasdi also took partnership drawings.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    42 views4 pages

    Partnership 230123 212622

    Uploaded by

    NUR AFIFAH MADNAN
    Lan, Zaza, and Hasdi operate a children's shoe business called Lazadi Enterprise. For the year ended December 31, 2015: 1) The business earned a net profit of RM78,600 excluding depreciation of RM5,500. Profits and losses are shared according to the Partnership Act of 1961. 2) Hasdi provided a RM20,000 loan to the business at 10% annual interest. Zaza contributed an additional RM10,000 in capital. 3) Each partner receives a RM1,500 monthly salary, though Lan only took RM15,000 of his salary for the year. Lan and Hasdi also took partnership drawings.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    QUESTION 4

    Lan, Zaza and Hasdi are partners of trading business which focus on selling children’s
    shoes. They set up a business with the name of Lazadi Enterprise last year. The business
    financial year ends on 31 December each year. Below are the agreement and the
    transactions for the year ended 31 December 2015:

    1. They agreed to share profits and losses according to Section 26 of Partnership Act
    1961.

    2. Interest on opening capital is to be allowed at 10% per annum and interest is to be


    charged at 8% per annum on all drawings made.

    3. All partners are entitled to receive a monthly salary of RM1,500. At the end of the
    accounting period, only Lan took RM15,000 of his salary.

    4. Hasdi has also agreed to give a loan of RM20,000 to the partnership business on 1
    January 2015.

    5. The partners’ capital and current accounts as of 1 January 2015 are as follows.

    Capital a/c Current a/c


    RM RM
    Lan 50,000 8,000
    Zaza 40,000 (1,000)
    Hasdi 35,000 3,500

    On 10 July 2015, Zaza contributed RM10,000 cash as additional capital to the


    partnership.

    6. The partners’ drawing during the year to 31 December 2015 were as follows:

    RM Month
    Lan 4,000 1 June 2015
    Hasdi 3,500 1 October 2015

    7. The partnership net profit for the year ended 31 December 2015 is calculated as
    follows:

    RM
    Gross profit 90,100
    Less:
    Interest on loan from Hasdi (1,600)
    General expenses (9,900)
    ---------
    Net Profit 78,600
    ---------
    This net profit does not include the depreciation expenses amounted to RM5,500.

    Required:

    a. Appropriation statement for the year ended 31 December 2015.


    (8 marks)
    b. Partners’ current and capital accounts for the year ended 31 December 2015.
    (5 marks)

    c. Explain the difference between fixed and fluctuating capital accounts in a partnership
    business.
    (2 marks)
    (Total: 15 marks)

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