Tom and Jerry are in partnership sharing profits and losses equally. They are entitled to 6% per annum of interest on capital. Interest on drawings is at 4% per annum. Tom is paid a salary of RM 80,000 per annum. Tom and Jerry have invested RM 50,000 and RM 30,000 in the partnership respectively. Tom made a withdrawal of RM 10,000 from the partnership on 1 July 2019. Their profit before distribution for the year ended 31 December 2019 was RM 120,000.

Required:

Compute the share of profit for each partner.

Answer rating: 100% (QA)

To compute the share of profit for each partner well go through the following steps Calculate the in... View the full answer