$($Subjective$)$

$($Capital & Current Accounts, Profit And Loss Appropriation Account.$)$

Chong and Loh were in partnership trading sharing profits and losses in the ratio $3$:$2$

respectively. They agreed to allow interest on capitals at $5\%$ per annum and to charge interest

on drawings at a rate of $10\%$ per annum. Chong was the partnership's manager and for his

services he was credited with a salary of RM$4,000$ per annum. Chong had guaranteed Loh a

minimum annual income of RM$3,000,$ after sharing partnership profits and before deducting

interest on drawings.

During the year ended $30$ April $1988,$ the net profit of the partnership trading was RM $10,000$

and the partners' drawings were:

Chong

RM $500$

Loh

RM $900$

On $31$ December $1987$ Chong withdrew RM$1,200$ from his Capital Account and Loh put in a

similar amount to his Capital Account.

The following were the balances of the partners' accounts at $1$ May $1987$:

Capital Accounts Current Accounts

Chong

RM$6,000($Cr$)$

RM$470($Cr$)$

$5660$

Loh

RM$3,600($Cr$)$

RM$510($Cr$)$

$3396,226$

$(1)$ the partnership's Profit And Loss Appropriation Account for the year ended $30$ April

$1988$ ;

$(2)$ the partners' Capital and Current Accounts as at $30$ April $1988.$