Ally and Fatty are in partnership named AF Ent. Profit sharing ratio is based on their contributed capital. Ally and Fatty contributed capital of RM80,000 and RM50,000 respectively. For the year ended 31 December 2019, AF Ent. managed to generate profit of RM20,800. Interest on capital and drawings is 10% and 5% per annum respectively based on their agreement. Ally is also entitled to receive a salary of RM 400 per month. Additional info: Ally withdrew RM5,000 while Fatty withdrew RM 4,000. Required: Prepare profit and loss appropriation for AF Enterprise (the Partnership firm).
Ally and Fatty are in partnership named AF Ent. Profit sharing ratio is based on their contributed capital. Ally and Fatty contributed capital of RM80,000 and RM50,000 respectively. For the year ended 31 December 2019, AF Ent. managed to generate profit of RM20,800. Interest on capital and drawings is 10% and 5% per annum respectively based on their agreement. Ally is also entitled to receive a salary of RM 400 per month. Additional info: Ally withdrew RM5,000 while Fatty withdrew RM 4,000. Required: Prepare profit and loss appropriation for AF Enterprise (the Partnership firm).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Ally and Fatty are in partnership named AF Ent. Profit sharing ratio is based on their contributed capital. Ally and Fatty contributed capital of RM80,000 and RM50,000 respectively.
- For the year ended 31 December 2019, AF Ent. managed to generate profit of RM20,800.
- Interest on capital and drawings is 10% and 5% per annum respectively based on their agreement. Ally is also entitled to receive a salary of RM 400 per month.
- Additional info: Ally withdrew RM5,000 while Fatty withdrew RM 4,000.
Required: Prepare
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