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AGA and ALA are in partnership sharing profits and losses in the proportion 3:2 respectively....

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Accounting

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AGA and ALA are in partnership sharing profits and losses in the proportion 3:2 respectively. The following is their trial balance as at 31 December 2020. RM 2,300 Current Account - AGA 2020 RM 2020 Jan 1 Balance b/d 6,400 | 31 Dec Salary Dec 31 Drawings 25,600 Interest on Interest on drawing 6,900 capital Interest on debit Current 1,500 Share of profit account Balance c/d 8,000 3,900 26,200 40,400 2021 Jan 1 Balance 40,400 RM 26,200 b/d RM 7,200 1,300 320 Current Account - ALA 2020 RM 2020 Dec 31 Drawings 1,500 1 Jan Balance b/d Interest on drawing 120 Salary Interest on loan 3,200 Interest on capital Balance c/d 8,900 Interest on credit current account Share of profit 13,720 2021 Jan 1 Balance b/d 1,000 3,900 13,720 RM 8,900 Required: A. Explain TWO (2) strength and TWO (2) weaknesses of AGA and ALA based on the Current Account 31 December 2020. (12 mar B. Give FOUR (4) advise to AGA and ALA to improve the situation they faced now (12 mar

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