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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:The partnership of Irdina and Irfan commenced on 1 April 2013 and accounts are
prepared to 31 December annually. The partnership agreement provided for the
following:
i.
Interest on capital is 10% per annum for each partner.
Irdina's capital contribution
Irfan's capital contribution
RM70,000
RM105,000
ii.
Salary
Irdina
RM2,000 per month.
RM2,500 per month
Irfan
Share of divisible income/(loss)
Irdina
2/5
Irfan
3/5
On 30* September 2014, Irdina left the partnership and withdrew her accumulated
capital and profits up to that date.
On 1 October 2014, Iftina joined the partnership and the new partnership provided
the following:
i.
Interest on capital is 10% per annum for each partner.
Irfan's capital contribution
Iftina's capital contribution
RM100,000
RM100,000
ii.
Salary
Irfan
RM2,500 per month
Iftina
RM2,500 per month
B.

Transcribed Image Text:ii.
Share of divisible income/loss
Irfan
Iftina
The partnership's Statement of Comprehensive Income for the year ended 31
December 2014 was as follows:
RM
8,418,600
7,961,400
Income from construction contract
Less: Cost of construction
Profit from construction
457,200
190,700
647,900
Other income
Less: General overheads
420,300
Net profit for the year
227,600
Included in the general overheads are:
Partners' salaries
Partners' interest on capital
Depreciation on fixed asset
RM
57,000
18,750
30,700
Capital allowance for the year of assessment was RM30,500.
Required:
Calculate the statutory income of each partner from the partnership for the year of
assessment 2014.
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