MAR Consulting Services was incorporated by three (3) sisters, Maya, Alina, and Rayyan on 1 January...

 

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MAR Consulting Services was incorporated by three (3) sisters, Maya, Alina, and Rayyan on 1 January 2018 with each partners contributing a capital of RM30,000. The partnership agreement sets out the following: a) active partners are given an allowance of RM12,000 per year. b) interest on the opening capital is set at a rate of 5% per annum. c) profit or loss is shared according to the ratio of 3: 2: 1 to Maya: Alina: Rayyan. EPPD1033 The account balance of MAR Consulting Services as at 31 December 2020 is as follows: Debit (RM) Credit (RM) Capital: Maya Alina Rayyan Current account: Maya Alina Rayyan Land Equipment Account receivable Cash Account payable Loan 3,200 92,000 27,000 18,000 37,300 40,000 38,000 35,000 500 2,000 14,000 25,000 2 Additional information: 1) Rayyan actively involves in business management since its incorporation while Maya and Alina only contributing capital. 2) Maya put additional cash for capital on 1 May 2020, while Alina and Rayyan made additional capital on 1 October 2020. 3) On 1 December 2020, Rayyan provided a loan of RM25,000 to the partnership. The loan is expected to be repaid after five years. Interest on loans for the current period has not been taken into account. 4) The withdrawals made by the partners during the year 2020 are as follows: Maya RM1,600 Alina RM2,600 Rayyan RM2,800 Withdrawal 1) Net profit for the period is RM30,000. Required: Prepare for MAR Consulting Service (round your answer to the nearest whole number): a) Profit and Loss Distribution Statement for the year ended 31 December 2020. b) Partner's Current Account as at 31 December 2020. c) Statement of Financial Position as at 31 December 2020. (9 marks) (5 marks) (6 marks) MAR Consulting Services was incorporated by three (3) sisters, Maya, Alina, and Rayyan on 1 January 2018 with each partners contributing a capital of RM30,000. The partnership agreement sets out the following: a) active partners are given an allowance of RM12,000 per year. b) interest on the opening capital is set at a rate of 5% per annum. c) profit or loss is shared according to the ratio of 3: 2: 1 to Maya: Alina: Rayyan. EPPD1033 The account balance of MAR Consulting Services as at 31 December 2020 is as follows: Debit (RM) Credit (RM) Capital: Maya Alina Rayyan Current account: Maya Alina Rayyan Land Equipment Account receivable Cash Account payable Loan 3,200 92,000 27,000 18,000 37,300 40,000 38,000 35,000 500 2,000 14,000 25,000 2 Additional information: 1) Rayyan actively involves in business management since its incorporation while Maya and Alina only contributing capital. 2) Maya put additional cash for capital on 1 May 2020, while Alina and Rayyan made additional capital on 1 October 2020. 3) On 1 December 2020, Rayyan provided a loan of RM25,000 to the partnership. The loan is expected to be repaid after five years. Interest on loans for the current period has not been taken into account. 4) The withdrawals made by the partners during the year 2020 are as follows: Maya RM1,600 Alina RM2,600 Rayyan RM2,800 Withdrawal 1) Net profit for the period is RM30,000. Required: Prepare for MAR Consulting Service (round your answer to the nearest whole number): a) Profit and Loss Distribution Statement for the year ended 31 December 2020. b) Partner's Current Account as at 31 December 2020. c) Statement of Financial Position as at 31 December 2020. (9 marks) (5 marks) (6 marks)

Answer rating: 100% (QA)

A partnership is an association of two or more individuals running a business jointly with a view to making profitEach partner contributes to the capital of the firm in cash or equivalent in the form ... View the full answer