Kelly, Kayla and Kathy are partners in Karisma Trading sharing profits or losses in the proportion of 3:1:2respectively. The partnership agreement states the following:1. Kelly and Kathy are entitled to a monthly salary of RM2,500 and RM2,000 respectively.2. Interest in the capital is at 5% per annum.3. Interest in drawings is at 7% per annum.The following balances were obtained from the partnership books for the financial year ended 31 December 2015.Please prepare the following:c) A fluctuating capital account is credited with the following except:A. Capital contribution of partnersB. Profit of the yearC. Interest on drawingsD. Remuneration to partners CREDIT(RM)283,030DEBIT(RM)Gross ProfitAdministrative expensesSelling and Distribution expenses136,58079,700Rental income10,400Land at cost125,00094,000Other non-current assets at costAccumulated depreciation as at 1 January 2015:Other non-current assetsAccounts Receivable and Accounts PayableBank15,30041,25041,70025,00033,600Inventories as at 31 December 2015Capital Accounts as at 1 January 2015:KellyКaylaKathyCurrent accounts as at 1 January 2015:75,00020,00043,000KellyKaylaKathyLoan from Kayla20,6504,85011,70016,000538,380538,380 Additional information:1.Other non-current assets are to be depreciated at 10% per annum on reducing balance method. Nodepreciation is to be provided on land.2.The partners are entitled to 8% interest per annum on any advances or loan provided to the partnership.3.The following accruals and prepayments are to be adjusted at the end of the accounting period:Rental income received in advanceRM820Administrative expenses accruedRM6504.The following were cash drawings made by partners, but have not yet been recorded:KellyKaylaKathyRM1,100 (taken on 1 March 2015)RM2,500 (taken on 30 April 2015)RM1,800 (taken on 1 May 2015)

Statement of Profit and Loss For the year ending 31 December 2015 Particulars Amount (RM)…

Answered: Kelly, Kayla and Kathy are partners in…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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Kelly, Kayla and Kathy are partners in Karisma Trading sharing profits or losses in the proportion of 3:1:2
respectively. The partnership agreement states the following:
1. Kelly and Kathy are entitled to a monthly salary of RM2,500 and RM2,000 respectively.
2. Interest in the capital is at 5% per annum.
3. Interest in drawings is at 7% per annum.
The following balances were obtained from the partnership books for the financial year ended 31 December 2015.

Please prepare the following:

c) A fluctuating capital account is credited with the following except:
A. Capital contribution of partners
B. Profit of the year
C. Interest on drawings
D. Remuneration to partners

CREDIT(RM)
283,030
DEBIT(RM)
Gross Profit
Administrative expenses
Selling and Distribution expenses
136,580
79,700
Rental income
10,400
Land at cost
125,000
94,000
Other non-current assets at cost
Accumulated depreciation as at 1 January 2015:
Other non-current assets
Accounts Receivable and Accounts Payable
Bank
15,300
41,250
41,700
25,000
33,600
Inventories as at 31 December 2015
Capital Accounts as at 1 January 2015:
Kelly
Кayla
Kathy
Current accounts as at 1 January 2015:
75,000
20,000
43,000
Kelly
Kayla
Kathy
Loan from Kayla
20,650
4,850
11,700
16,000
538,380
538,380

Additional information:
1.
Other non-current assets are to be depreciated at 10% per annum on reducing balance method. No
depreciation is to be provided on land.
2.
The partners are entitled to 8% interest per annum on any advances or loan provided to the partnership.
3.
The following accruals and prepayments are to be adjusted at the end of the accounting period:
Rental income received in advance
RM820
Administrative expenses accrued
RM650
4.
The following were cash drawings made by partners, but have not yet been recorded:
Kelly
Kayla
Kathy
RM1,100 (taken on 1 March 2015)
RM2,500 (taken on 30 April 2015)
RM1,800 (taken on 1 May 2015)

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