Andy and David started a partnership of providing auditing services on 1 January 2007 and prepared...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Andy and David started a partnership of providing auditing services on 1 January 2007 and prepared their accounts to 31 December annually. RM RM 160,000 Gross profit Less: Salaries - Andy - David - Staff Office rental Postage and stationery Interest on partners capital - Andy - David Depreciation Renovation of office premises Life insurance of Andy Approved cash donation 36,000 28,000 26,400 18,000 680 3,000 5,000 1,840 2,800 1,630 1,000 124,350 35,650 Net profit The profit sharing ratio is 70% to Andy and 30 % to David. Capital allowances for the Y/A 2007 amount to RM 1,800. Required: (a) Compute the provisional adjusted income / loss and divisible income / loss of the partnership for the Y/A 2007. (b) Compute the adjusted income / loss, capital allowances and approved donation allocated to each partner for the Y/A 2007. Andy and David started a partnership of providing auditing services on 1 January 2007 and prepared their accounts to 31 December annually. RM RM 160,000 Gross profit Less: Salaries - Andy - David - Staff Office rental Postage and stationery Interest on partners capital - Andy - David Depreciation Renovation of office premises Life insurance of Andy Approved cash donation 36,000 28,000 26,400 18,000 680 3,000 5,000 1,840 2,800 1,630 1,000 124,350 35,650 Net profit The profit sharing ratio is 70% to Andy and 30 % to David. Capital allowances for the Y/A 2007 amount to RM 1,800. Required: (a) Compute the provisional adjusted income / loss and divisible income / loss of the partnership for the Y/A 2007. (b) Compute the adjusted income / loss, capital allowances and approved donation allocated to each partner for the Y/A 2007.
Expert Answer:
Answer rating: 100% (QA)
Answer leauisiouae adjiestid Iucaul I los fole fealuded z007 leseticullles laed... View the full answer
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
Posted Date:
Students also viewed these accounting questions
-
Glassmere Ltd (which applies IAS17) prepares accounts to 31 December each year. On 1 January 2014, the company acquired an asset by means of a finance lease. Details of the lease agreement are as...
-
Petersford plc prepares accounts to 31 December each year. On 1 January 2014, the company acquired a non-current asset at a cost of 256,000 and decided to depreciate this asset on the straight-line...
-
Northerley plc prepares accounts to 31 December each year and has operated a defined benefit pension scheme for many years. At 31 December 2016, the present value of the defined benefit obligation...
-
Montage Pty Limited (Montage) is a resident private company and is not a base rate entity. Which of the following transactions would result in a debit entry to Montage's franking account? Payment of...
-
Refer to the information in M6-17 regarding Pueblo Company. Determine target sales needed to earn a $25,000 targetprofit. Product A $40,000 14,000 $26,000 Product B Sales Revenue Less: Total Variable...
-
How many normal modes of vibration are IR active for (a) H 2 O, (b) SiF 4 , (c) PCl 3 , (d) AlCl 3 , (e) CS 2 (f) HCN?
-
At a raffle, 1500 tickets are sold at \($2\) each for four prizes of \($500,\) \($250,\) \($150,\) and \($75.\) You buy one ticket. Find the expected value and interpret its meaning.
-
The Runge Controls Corporation manufactures and markets electrical control systems: temperature controls, machine controls, burglar alarms, and the like. The company acquires electrical and...
-
Interest rate swap Triple A and Triple B have been offered the following rates per annum on a $10 million 5-year loan: Triple A Triple B S&P credit rating AAA BBB Fixed rate 10.5% 13.6% Floating...
-
Find the length of BC c 12.7 in. 34 30 A b uestion 17 In (x+ 1)+In(x) In(6) Solve for x: uestion 18 The expression (310gx)(31og x) is equivalent to
-
What is the difference between a public and a private nuisance?
-
What strategies does business use to manage legal risk?
-
Why is gratitude not a sufficient consideration to bind a promisor?
-
Distinguish the civil law system from the common law system.
-
Explain the requirements necessary to successfully apply equitable estoppel.
-
How patient wait time affects patient satisfaction and what are the ramification when the time is too long.
-
Calculate the Lagrange polynomial P 2 (x) for the values (1.00) = 1.0000, (1.02) = 0.9888, (1.04) = 0.9784 of the gamma function [(24) in App. A3.1] and from it approximations of (1.01) and (1.03).
-
Identify the main classes of information that should be presented in general purpose financial reports.
-
The summarised statement of comprehensive income of Scharp Ltd for the year to 30 June 2018 is shown below, together with the company's statement of financial position at that date (with comparatives...
-
During the year to 31 December 2017, Tinderlake Ltd attempted to stimulate sales and increase its profits by reducing selling prices, holding larger inventories and giving customers longer credit....
-
Why is it important that each pattern must focus on one specific problem?
-
A pattern is not intended to represent a model for a complete system. Explain.
-
Why is it important to decompose a system into individual components?
Study smarter with the SolutionInn App