PART B

1.0 PARTNERSHIP AGREEMENT

+ Additional Partnership Business Information

 Accounting year end : 30 November 2022

 Net Profit or Loss (does not include depreciation charges) : RM 330,000

 Additional Capital contributed by Partner B via online banking on 2 February

2022 : RM 30,000

 Interest on capital (Basis) : Calculated on the basis of ending capital

 Drawing made by Partner C : RM700 was made on the first week of the third month

of the accounting period7

 Salary to partner : As at the end of the accounting period, salaries were paid to all

partners RM8,000 each.

 Sharing of Profit or Loss Ratio : 2:1:1

 Partner C is guaranteed with a minimum profit : RM 90,000

 Capital account

Partner Partner Partner Partner Partner Partner

A B C A B C
RM RM RM RM RM RM
Bal b/d 100000 50000 60000
Bal c/d 100000 80000 60000 Cash - 30000 -
(additional)
100000 80000 60000 100000 80000 60000

Current Account

Partner Partner Partner Partner Partner Partner

A B C A B C
RM RM RM RM RM RM
Bal b/d 8000 7000 Bal b/d 5000
Drawings 700 Interest 8000 5800 4800
on
capital
Interest 26 Interest 2750
on on loan
drawing
Bal c/d Salaries 4000 4000 4000
Profit
shared
 Appropriation Statement for the year ended 30 April 2022

RM RM
Net profit b/d 300,000
(-) Interest on Loan (50,000* 6% * 4/12) (1000)
(-) Depreciation n machinery ( 10% * 70,000) (7000)
Adjusted Net Profit 292,000

Add: Interest on drawings

Partner C (5% * 800 *3/12) 10

Less: Salaries
Partner A 12,000
Partner B 12,000
Partner C 12,000 (36,000)

Less: Interest on capital

Partner A (100,000 * 8%) 8000
Partner B (50,000* 8%) + (30,000*8%*3/12) 4600
Partner C (60,000*8%) 4800 (17,400)

Net Profit for Appropriation 238,610

Profit shared
Partner A (1/3*238,610) (79536.67 – 231.67) 79,305
Partner B (1/3*238,610) (79536.67 – 231. 67) 79,305
Partner C (1/3*246840) (79536.67 + 231.67 +231.67) 80,000

238,610