Working 1

Pang, Loi and Shen Partnership

Statement of Comprehensive Income for the year ended 31 December 2018
RM RM
Sales 155,000
(-) Cost of goods sold
Opening inventory 7,500
(+) Purchases 55,800
Cost of goods available for sale 63,300
(-) Closing inventory -6,000
Cost of goods sold -57,300
Gross profit 97,700

(+) Other sources of income

Rent received 11,800
Total income 109,500

(-) Operating expenditure

General and Administrative Expenses
Salaries expenses 20,600
General insurance expenses 5,600
Depreciation 4,500
Depreciation 4,300

Selling and Distribution Expenses 15,000

Interest and Financing Expenses

Interest expenses 800
Discounts 1,800
-52,600
Net profit 56,900
Working 2
Interest on capital
Pang = RM60,000 x 8% + RM10,000 x 8% + RM10,000 x 8% x 6/12
= RM4,800 + RM800 + RM400
= RM6,000

Loi = RM20,000 x 8% + RM5,000 x 8% + RM20,000 x 8% x 9/12 + RM10,000 x 8% x 6/12

= RM1,600 + RM400 + RM1,200 + RM400
= RM3,600

Shen = RM50,000 x 8% + RM20,000 x 8% + RM20,000 x 8% x 9/12 + RM30,000 x 8% x 6/12

= RM4,000 + RM1,600 + RM1,200 + RM1,200
= RM8,000

Working 3
Interest on drawings
Pang = RM1,500 x 4% + RM2,000 x 4% x 3/12
= RM60 + RM20
= RM80

Loi = RM1,000 x 4% x 10/12 + RM2,000 x 4% x 6/12

= RM33 + RM40
= RM73

Shen = RM3,000 x 4% + RM2,000 x 4% x 10/12 + RM1,000 x 4% x 6/12

= RM120 + RM67 + RM20
= RM207

Working 4
Interest on loan
Pang = RM4,000 x 6% x 9/12 + RM6,000 x 6% x 3/12
= RM180 + RM90
= RM270

Loi = Rm8,000 x 6% x 9/12 + RM3,000 x 6% x 6/12 + RM9,000 x 6% x 3/12

= RM360 + RM90 + RM135
= RM585

Shen = RM2,000 x 6% x 9/12 + RM3,000 x 6% x 3/12

= RM90 + RM45
= RM135
Working 5
RM
Unadjusted net profit 56,900
(-) Bad debt -1,000
Interest on loan -990
-1,990

(+) Dividend received 7,800

To profit and loss appropriate account 62,710
 Profit and Loss Appropriation Account
RM RM
Net profit from normal operation 62,710
(+) Interest on drawings : Pang 80
: Loi 73
: Shen 207
360
(-) Interest on capital : Pang -6,000
: Loi -3,600
: Shen -8,000
-17,600
(-) Commission : Pang -1,550
Net profit before transfer to reserve 43,920

Transfer to reserve -6,588

Net profit available for appropriation 37,332

Profit distribution : Pang 14,933

: Loi 7,466
: Shen 14,933
37,332
 Partner's Capital Account
Date Particular Pang Loi Shen Date Particular Pang Loi Shen
2018 RM RM RM 2018 RM RM RM
31-Dec Balance c/d 105,000 73,000 131,000 1-Jan Balance b/d 60,000 20,000 50,000
1-Jan Additional
capital 10,000 5,000 20,000
1-Apr Additional
capital 20,000 20,000
1-Jul Additional
capital 10,000 10,000 30,000
31-Dec Profit and loss 25,000 18,000 11,000

105,000 73,000 131,000 105,000 73,000 131,000

Partner's Current Account

Date Particular Pang Loi Shen Date Particular Pang Loi Shen
2018 RM RM RM 2018 RM RM RM
1-Jan Drawings 1,500 3,000 1-Jan Balance b/d 8,000 14,500 21,000
1-Mar Drawings 1,000 2,000 31-Dec Interest on
1-Jul Drawings 2,000 1,000 capital 6,000 3,600 8,000
1-Oct Drawings 2,000 31-Dec Interest on
31-Dec Interest on loan 270 585 135
Drawings 80 73 207 31-Dec Commission 1,550
31-Dec Balance c/d 33,973 25,878 43,361 31-Dec Profit
distribution 14,933 7,466 14,933
31-Dec Profit and loss 6,800 2,800 5,500

37,553 28,951 49,568 37,553 28,951 49,568

 Balance Sheet ( Extract ) as at 31 December 2018
RM RM
Financed by :
Partner's capital account : Pang 105,000
: Loi 73,000
: Shen 131,000
309,000

Partner's current account : Pang 33,973

: Loi 25,878
: Shen 43,361
103,212
Reserve (RM6,588+RM2,000) 8,588
Total partner's equity 420,800