Francis and Peter are in a partnership sharing profits and losses in the ratio 3:2. The following is their trial balance as at 30 September 2020.

particulars	Debit	Credit
Buildings (cost: RM 210,000)	160,000
Fixtures at cost	8,200
Provision for depreciation: Fixtures		4,200
Accounts receivable	61,400
Accounts payable		26,590
Cash at bank	6,130
Inventory at 30 September 2011	62,740
Sales		363,111
Purchases	210,000
Carriage Outwards	3,410
Discounts allowed	620
Loan interest: P. Prince	3,900
Office expenses	4,760
Salaries and wages	57,809
Bad debts	1,632
Allowance for doubtful debts		1400
Loan from P. Prince		65,000
Capital:            Peter		100,000
Paul		75,000
Current accounts: Peter		4,100
Paul		1,200
Drawings:        Peter	31,800
Paul	28,2000	_______
	640,601	640,601

Additional information:

i. Inventory, 30 September 2020: RM74,210

ii. Expenses to be accrued: Office expenses: RM215; Wages: RM720

iii. Depreciate fixtures 15 percent on reducing balance basis, building RM5,000.

iv. Reduce provision for doubtful debts to RM1,250

v. Partnership salary: RM30,000 to Francis not yet entered.

vi. Interest on drawings: Francis RM900 and Peter RM600

vii. Interest on capital account balances at 5 percent.

Based on the above information,

a) PREPARE a statement of profit or loss and profit and loss appropriation account for

the year ending 30 September 2020. 

b) PREPARE Statement of financial position as at that date.

Answer rating: 100% (QA)

PART A Francis and Peter Statement of profit or loss and profit and loss appropriation account for t... View the full answer