The adjusted trial balance for the Sarah & Suhairi Partnership for the year ended 31 March...

  

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The adjusted trial balance for the Sarah & Suhairi Partnership for the year ended 31 March 2021 is as follows: SARAH & SUHAIRI PARTNERSHIP Adjusted Trial Balance as at 31 March 2021 Debit (RM) Current assets Non-current assets Current liabilities Long Term Capital Liabilities : Sarah : Suhairi : Sarah : Suhairi Take Sales Cost of Goods Sold Operating Expenses 19,000 80,000 4,000 7,000 62,000 23,000 195,000 Credit (RM) 7,000 50,000 20,000 18,000 100,000 195,000 3 The contents of the partnership agreement are stated as follows: 1. A monthly salary of RM1,000 is paid to Sarah and RM2,000 to Suhairi. 2. Interest on capital is allowed at the rate of 10% per annum of the initial capital balance of each partner. 3. Profit and loss are divided equally between the partners. 4. Both Sarah and Suhairi's take-offs are made on the last day of the accounting period. 5. This partnership uses the variable capital method to account for its equity. Be required: a) Determine the net income of the Sarah & Suhairi Partnership for the year ended 31 March 2021. b) Prepare for Sarah & Suhairi Partnership: i) Profit and Loss Separation Schedule for the year ended 31 March 2021. ii) Partner's Capital Statement for the year ended 31 March 2021. iii) Closing note on 31 March 2021. c) If the Sarah & Suhairi Partnership uses the fixed capital method, prepare a closing entry to record the distribution of profit and loss and take-offs as at 31 March 2021. The adjusted trial balance for the Sarah & Suhairi Partnership for the year ended 31 March 2021 is as follows: SARAH & SUHAIRI PARTNERSHIP Adjusted Trial Balance as at 31 March 2021 Debit (RM) Current assets Non-current assets Current liabilities Long Term Capital Liabilities : Sarah : Suhairi : Sarah : Suhairi Take Sales Cost of Goods Sold Operating Expenses 19,000 80,000 4,000 7,000 62,000 23,000 195,000 Credit (RM) 7,000 50,000 20,000 18,000 100,000 195,000 3 The contents of the partnership agreement are stated as follows: 1. A monthly salary of RM1,000 is paid to Sarah and RM2,000 to Suhairi. 2. Interest on capital is allowed at the rate of 10% per annum of the initial capital balance of each partner. 3. Profit and loss are divided equally between the partners. 4. Both Sarah and Suhairi's take-offs are made on the last day of the accounting period. 5. This partnership uses the variable capital method to account for its equity. Be required: a) Determine the net income of the Sarah & Suhairi Partnership for the year ended 31 March 2021. b) Prepare for Sarah & Suhairi Partnership: i) Profit and Loss Separation Schedule for the year ended 31 March 2021. ii) Partner's Capital Statement for the year ended 31 March 2021. iii) Closing note on 31 March 2021. c) If the Sarah & Suhairi Partnership uses the fixed capital method, prepare a closing entry to record the distribution of profit and loss and take-offs as at 31 March 2021.

Answer rating: 100% (QA)

Solution a PL Ac Dr Particulars Cost of Goods Sold62000 Sales Operating exp 23000 Gr... View the full answer