The followings are the balance of accounts for J & V as at 30 June 2016.
Account name
Sales
Inventory
Purchases
Rent
Salaries
Depreciation
Plant, Property and Equipment
Accumulated depreciation
Cash
Debtors
Long term liability
Creditors
Capital, J
Capital, V
Current account, J
Current account, V
Additional information:
Ending inventory RM20,000.
Balance
RM120,000
RM10,000
RM80,000
RM6,000
RM12,000
RM2,000
RM20,000
RM2,000
RM15,000
RM5,000
RM10,000
RM8,000
RM20,000
RM30,000
RM5,000
(RM1,000)
V has taken RM10,000 on 1st January 2016, not yet recorded. Interest on drawings is 5% per year.
Capital interest is 10 percent per annum.
Salary for V is RM12,000.
Assuming, profit sharing ratio based on capital, prepare
i.
profit and loss account for J & V.
ii.
profit and loss account appropriation.
iii.
current account.
iv.
balance sheet abstract for owners' equity.