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Answer For Quiz 1 - Partnership Accounts
Answer For Quiz 1 - Partnership Accounts
The profit needs to be adjusted to account for the loan interest of 9% x RM25,000 = RM2,250.
The revised profit for appropriation is RM45,500 RM2,250 = RM43 250.
RM RM
Revised profit 43 250
Add: Interest on drawings
Ali (15,000 x 4%) 600
Baba (22,000 x 4%) 880 1 480
Less: Salary
Baba (8 500)
33 430
Profit share
Ali (60%) 20058
Baba (40%) 13 372 33 430
CURRENT ACCOUNT
Ali Baba Ali Baba
RM RM RM RM
Financed by:
Capital Account: Ali 35,000
Baba 21,000 46,000