A. Three good friends from a primary school in Taiping in 1970's met during a school...

 

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A. Three good friends from a primary school in Taiping in 1970's met during a school reunion held in Kula Lumpur. They are all now having good job except for Joe who has been retrenched due to the relocation of the employer's plant from Malaysia to Cambodia. Sehar and Hock Seng decided to help Joe by forming a business partnership to operate a restaurant called Kita Punya Warong (KPW). On I June 2019, KPW started its operation with the following capital investment structure: Joe (RM) Hock Seng (RM) 50,000 Schar (RM) Cash 10,000 10,000 20,000 Vehicle 15,000 Equipment Note Payable 15,000 20,000 20,000 Additional information: 1. Interest on cash capital investment is 10% while any withdrawals made are charged at 5% per annum respectively. 2 A cash loan by Sehar to KPW is given a 7% interest per annum until it is fully paid. 3. Joe was given a salary of RM2,500 until end of 2019. Starting from January 2020, he received a salary of RM3,000 per month. + On I January 2020, both Sehar and Hock Seng withdrew cash RM10,000 and RM15,000 respectively from KPW. s. KPW's first year operation has recorded a net profit of RM144,000. 6 Joe. Schar and Hock Seng agreed to share KPW's profit and loss based on 2:3:5 ratio. REQUIRED: (ei Prepare the journal entry to record the partners' initial investments in KPW (explanation is not required). 6 Prepare the profit and loss appropriation of KPW for the year ended 31 May 2020. Identify and explain the difference between cumulative and non-cumulative preference shares. B (a) (b) Describe TWO (2) main differences with regards to the share price under the new Companies Act (2016) in comparison to former Companies Act (1965). A. Three good friends from a primary school in Taiping in 1970's met during a school reunion held in Kula Lumpur. They are all now having good job except for Joe who has been retrenched due to the relocation of the employer's plant from Malaysia to Cambodia. Sehar and Hock Seng decided to help Joe by forming a business partnership to operate a restaurant called Kita Punya Warong (KPW). On I June 2019, KPW started its operation with the following capital investment structure: Joe (RM) Hock Seng (RM) 50,000 Schar (RM) Cash 10,000 10,000 20,000 Vehicle 15,000 Equipment Note Payable 15,000 20,000 20,000 Additional information: 1. Interest on cash capital investment is 10% while any withdrawals made are charged at 5% per annum respectively. 2 A cash loan by Sehar to KPW is given a 7% interest per annum until it is fully paid. 3. Joe was given a salary of RM2,500 until end of 2019. Starting from January 2020, he received a salary of RM3,000 per month. + On I January 2020, both Sehar and Hock Seng withdrew cash RM10,000 and RM15,000 respectively from KPW. s. KPW's first year operation has recorded a net profit of RM144,000. 6 Joe. Schar and Hock Seng agreed to share KPW's profit and loss based on 2:3:5 ratio. REQUIRED: (ei Prepare the journal entry to record the partners' initial investments in KPW (explanation is not required). 6 Prepare the profit and loss appropriation of KPW for the year ended 31 May 2020. Identify and explain the difference between cumulative and non-cumulative preference shares. B (a) (b) Describe TWO (2) main differences with regards to the share price under the new Companies Act (2016) in comparison to former Companies Act (1965).

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a JOURNAL ENTRIES IN THE BOOKS OF KPW 1 1 June 2019 Cash ac DR 80000 to Sehar Capital ac 30000 t... View the full answer