Rahim and Chong have prepared their draft accounts for the year ended 30 April 2022. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Rahim and Chong have prepared their draft accounts for the year ended 30 April 2022. The draft accounts report a gross profit of RM157,846 and a net profit of RM51,024. Cash payments of RM15,000 to each partner have been included in expenses. At 1 May 2021 the balances on the partners' capital and current accounts were: Capital account Current account The partnership agreement includes the following terms: Share of profits and losses Salary Interest on capital (per annum). Rahim RM 125,000 (credit) 34,568 (credit) Required: Calculate: 2/3 18,000 8% Chong RM 70,000 (credit) 23,741 (debit) 1/3 12,000 8% The partnership agreement also states that the partners' capital account balances will remain fixed, and that the balances on the partners' current accounts should not be included in the calculation of interest on capital. a. the correct gross profit and net profit to be reported in the partnership profit and loss account for the year ended 30 April 2022. (2 marks) b. the amount of profit which will be credited to each partner's current account for the year to 30 April 2022. (8 marks) c. the balance on each partner's current account at 30 April 2022. (5 marks) Rahim and Chong have prepared their draft accounts for the year ended 30 April 2022. The draft accounts report a gross profit of RM157,846 and a net profit of RM51,024. Cash payments of RM15,000 to each partner have been included in expenses. At 1 May 2021 the balances on the partners' capital and current accounts were: Capital account Current account The partnership agreement includes the following terms: Share of profits and losses Salary Interest on capital (per annum). Rahim RM 125,000 (credit) 34,568 (credit) Required: Calculate: 2/3 18,000 8% Chong RM 70,000 (credit) 23,741 (debit) 1/3 12,000 8% The partnership agreement also states that the partners' capital account balances will remain fixed, and that the balances on the partners' current accounts should not be included in the calculation of interest on capital. a. the correct gross profit and net profit to be reported in the partnership profit and loss account for the year ended 30 April 2022. (2 marks) b. the amount of profit which will be credited to each partner's current account for the year to 30 April 2022. (8 marks) c. the balance on each partner's current account at 30 April 2022. (5 marks)
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
The perspective of ebola, where they sold the defective gowns and citations too. I need three pages of full-fledged matter and 5 to 6 slides
-
Case Study: Quick Fix Dental Practice Technology requirements Application must be built using Visual Studio 2019 or Visual Studio 2017, professional or enterprise. The community edition is not...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Evaluate the integral (4e* + 2 In (2))dx.
-
Briefly describe what is meant by the money multiplier and indicate the factors that affect its magnitude or size.
-
A __________ is any hypothetical person using a program and providing input for it. a. Designer b. User c. Guinea pig d. Test subject
-
CMS is a claims processing company in Mobile, Alabama. Chastity Jones, a black woman, completed an online employment application for a customer service position with CMS. Jones interviewed with a...
-
Weston Corporation manufactures auto parts for two leading Japanese automakers. Nancy Evans is the management accountant for one of Westons largest manufacturing plants. The plants general manager,...
-
What type of failure has occurred when a new-product introduction loses money for the company when accounting for development, marketing, and production costs?
-
The XYZ Manufacturing Company produces two products, S-101 and C-110. You have obtained the following information regarding the annual manufacturing support (i.e., factory overhead) costs associated...
-
6. If manufacturing the Job Order No. ABC 256, required $3,000 of direct materials and 100 direct labor-hours at $19 per hour. Estimated total overhead for the year was $2,100,000 and estimated...
-
The total payroll of Page Corporation was $4,320,000, of which $680,000 represented amounts paid in excess of $128,400 to certain employees. The amount paid to employees in excess of $7,000 was...
-
Consider the following address: 189.166.18.0/24. Give the: subnet mask, network, and broadcast addresses, for the first subnet upon borrowing 2 bit from the host portion to form subnets. O a....
-
Arobotics company is designing a swarm of drones for efficient parcel delivery in a city. Each drone is equipped with a sensor array that helps it avoid collisions with other drones. The challenge is...
-
Question 40 Assume that you define a function to delete a node in Doubly Linked List. Please select the appropriate code for the blank. public static Node deleteNode(Node deleted Note) { if (head...
-
Alice picks the two prime numbers p = 31, q = 47 as her secret numbers for an RSA cipher, and publishes the public key N, e with e = 11. a. What is N? b. Bob wishes to send an enciphered kiss to...
-
December futures on the S&P 500 index trade at 250 times the index value of 3883.75. The S&P 500 index spot value is 3901.35 with an annualised dividend yield of 1.69% and the annualised risk-free...
-
Fill in each blank so that the resulting statement is true. A solution to a system of linear equations in two variables is an ordered pair that__________ .
-
Dr. George E. Beeper is a single taxpayer. He lives at 45 Mountain View Dr., Apt. 321, Spokane, WA 99210. Dr. Beeper's Social Security number is 775-88-9531. Dr. Beeper works for the Pine Medical...
-
Matthew borrows $250,000 to invest in bonds. During 2012, his interest on the loan is $30,000. Matthew's interest income from the bonds is $10,000. This is Matthew's only investment income. a....
-
Charlie's Green Lawn Care is a cash basis taxpayer. Charlie Adame, the sole proprietor, is considering delaying some of his December 2012 customer billings for lawn care into the next year. In...
-
Are the initial rates lower on a fixed-rate loan or a variable-rate loan? Why?
-
Why are mortgage payments not included in the debt limit ratio?
-
Visit the Consumer Financial Protection Bureau Web site (www.consumerfinance.gov). Based on the public information available, describe what role the bureau plays in providing consumer education,...
Study smarter with the SolutionInn App