Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. yeung, kim and chong are in a partnership sharing

Yeung, Kim and Chong are in a partnership sharing profits and losses in the ratio...

50.1K

Verified Solution

Question

Accounting

image
image
Yeung, Kim and Chong are in a partnership sharing profits and losses in the ratio of 2:2:5 respectively. The partnership agreement provides the following terms: 1 No interest is paid or charged on the current account 2 8% interest is provided on the capital account balances 3 Interest on drawings is charged at 10% per annum on a pro-rata basis Yeung, the Operation Manager and Kim, the Financial Controller, manage the day-to-day business and they are paid a salary of $280,000 and S195,000 per annum respectively The balances of the capital accounts and current accounts as at 1 January 2017 were as follows Capital account Current account Yeung Kim Chong 200,000 200,000 500,000 25,000 15,000 12,000 The partners' drawings during the year were as follows Yeung - on 1 July 2017 Kim -on 1 April 2017 Chong- on 1 Oct 2017 50,000 65,000 20,000 The net profit (before appropriation to the partners) for the year ended 31 December, 2017 was $550,600

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students