Ayie decided to retired from the partnership on 1 September 20x7 due to illness. The goodwill...

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Ayie decided to retired from the partnership on 1 September 20x7 due to illness. The goodwill is valued at RM120,000 on the retirement date. Goodwill account will not be maintained in the books. A new agreement is formed as follows: No interest on capital to be provided. Interest on drawings is increased to 10% per annum. Profits are to be shared in the ratio 3.2 for Amy and Edy. The following information is relevant for the year ended 31 December 20x7: 3. 1. The following is the opening balance as at 1 January 20x7: Partners 4. Amy is to be paid monthly salary of RM1,535. Profits are to be shared in the ratio 3:1:2 for Amy, Edy and Ayie. i. 5. il Amy Edy Ayie 2. Drawings made during the accounting period are as follows: Partners C. Amy Edy Ayie Capital account Current account (RM) (RM) 100,000 70,000 85,000 Required: Prepare the following: 30,000 20,000 (5,000) Date 1 Jan 20x7 1 Oct 20x7 1 Mar 20x7 Amount (RM) 6,000 5,000 4,000 Due to Ayie's retirement, the assets of the partnership were revalued. The value of freehold property was increased by RM100,000 and the value of motor vehicles and inventories were decreased by RM25,000 and RM15,000 respectively. Ayie's current account balance was to be transferred to capital account. Any amount due to him will be paid except for RM10,000 will remain as loan to the partnership. The partnership made a net profit of RM150,000 for the year end and it was assumed that this profit had accrued evenly throughout the year. a The Revaluation Account b. Appropriation Statement showing the pre and post periods for the year ended 31 December 20x7. Partners Current Statement for Ayie only Ayie decided to retired from the partnership on 1 September 20x7 due to illness. The goodwill is valued at RM120,000 on the retirement date. Goodwill account will not be maintained in the books. A new agreement is formed as follows: No interest on capital to be provided. Interest on drawings is increased to 10% per annum. Profits are to be shared in the ratio 3.2 for Amy and Edy. The following information is relevant for the year ended 31 December 20x7: 3. 1. The following is the opening balance as at 1 January 20x7: Partners 4. Amy is to be paid monthly salary of RM1,535. Profits are to be shared in the ratio 3:1:2 for Amy, Edy and Ayie. i. 5. il Amy Edy Ayie 2. Drawings made during the accounting period are as follows: Partners C. Amy Edy Ayie Capital account Current account (RM) (RM) 100,000 70,000 85,000 Required: Prepare the following: 30,000 20,000 (5,000) Date 1 Jan 20x7 1 Oct 20x7 1 Mar 20x7 Amount (RM) 6,000 5,000 4,000 Due to Ayie's retirement, the assets of the partnership were revalued. The value of freehold property was increased by RM100,000 and the value of motor vehicles and inventories were decreased by RM25,000 and RM15,000 respectively. Ayie's current account balance was to be transferred to capital account. Any amount due to him will be paid except for RM10,000 will remain as loan to the partnership. The partnership made a net profit of RM150,000 for the year end and it was assumed that this profit had accrued evenly throughout the year. a The Revaluation Account b. Appropriation Statement showing the pre and post periods for the year ended 31 December 20x7. Partners Current Statement for Ayie only

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Answer a Revaluation Account Description RM RM Increase in Freehold Pr... View the full answer