RM RM Average net profit 140000 Less: Salaries/Remuneration 98000 Interest on capital (166Kx15%) 24900 122900 17100 Amount of goodwill = RM17,100 x 3 = RM51,300
Revaluation Statement as at 1 January 2015
DR CR BAL RM RM RM Office Equipment 20000 20000 Motor Vehicles 4000 16000 Inventories 2000 18000 Capital Statement: Lee (18,000/2) 9000 Chin (18,000/2) 9000 18000
Appropriation Statement for the year ended 1 Jan 2015
RM RM Net profit b/d 108784 Add: Interest on drawing Lee (8000x5%x9/12) 300 Chin (4000x5%x3/12) 50 350 109134 Less: Interest on capital Lee (80,000x8%) 6400 Chin (80,000x8%) 6400 Wei (80,000x8%) 6400 19200 89934 Share of profit: Lee (89,934x2/5) 35974 Chin (89,934x2/5) 35974 Wei (89,934x1/5) 17987 89935 Capital Account Lee Chin Wei Lee Chin Wei RM RM RM RM RM RM Goodwill 20520 20520 10260 Bal b/d 80000 80000 - Bal c/d 94130 94130 80000 Revaluation a/c 9000 9000 Goodwill 25650 25650 Cash: Capital 80000 Goodwill 10260 114650 114650 90260 114650 114650 90260