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Sage and Onion Financial Statements 20X0

1) Sage and Onion reported net profit of RM39,130 for the year ended 31 December 20X0. 2) The net profit was allocated to the partners Sage (RM22,840) and Onion (RM16,290) based on their profit sharing ratio of 1:1. 3) As of 31 December 20X0, Sage and Onion had total assets of RM210,300, including non-current assets of RM60,500 and current assets of RM149,800. Their capital and liabilities included partners' capital of RM150,000 and current liabilities of RM45,900.

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429 views3 pages

Sage and Onion Financial Statements 20X0

1) Sage and Onion reported net profit of RM39,130 for the year ended 31 December 20X0. 2) The net profit was allocated to the partners Sage (RM22,840) and Onion (RM16,290) based on their profit sharing ratio of 1:1. 3) As of 31 December 20X0, Sage and Onion had total assets of RM210,300, including non-current assets of RM60,500 and current assets of RM149,800. Their capital and liabilities included partners' capital of RM150,000 and current liabilities of RM45,900.

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Lee Li Heng
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  • Statement of Profit or Loss: This section covers the profit or loss statement for the year, including sales, costs, and profits.
  • Appropriation Statement: Details the appropriation of net profit, including shares and partner accounts for Sage and Onion.
  • Statement of Financial Position: Provides a breakdown of assets and liabilities, showing the financial position as of year-end.

Answer Question 6.

Sage and Onion


Statement of Profit or Loss for the year ended 31 December 20X0
RM RM
Sales 508,000
Less: Returns inwards/sales returns (6,000)
502,000
Less: Cost of Goods Sold
Opening inventory 75,000
(+) Purchases (380,000 + 3,000) 383,000
(-) Returns outwards/purchase returns (12,000)
446,000
(+) Carriage inwards 21,500
467,500
Less: Closing inventory (68,000)
Less: Drawings (500 + 630) (1,130)
(398,370)
Gross Profit 103,630

Add: Other Income


Discount received 1,000
104,630
Less: Expenses
Carriage outwards 3,000
Staff salaries (42,000 + 900) 42,900
Office expenses 7,500
Advertising 5,000
Discount allowed 1,200
Irrecoverable debts 1,400
Rent and business rates (2,800 – 200) 2,600
Deprecation – fixtures and fittings (15,000 X 10%) 1,500
Increase in allowance for receivables (2,400 – 2,000) 400
(65,500)
Net Profit 39,130

Allocated to:
Sage 22,840
Onion 16,290 39,130
Sage and Onion
Appropriation Statement for the year ended 31 December 20X0

Sage Onion Total


RM RM RM
Net profit 39,130
Interest on capital 5,000 2,500 (7,500)
Interest on current account 100 (30) (70)
Salaries 12,000 8,000 (20,000)
Interest on drawings (360) (280) 640
Residual profit 12,200

Shared 1:1 6,100 6,100


22,840 16,290 39,130

Partners’ Capital Account


Sage Onion Sage Onion
RM RM RM RM
Balance c/d 100,000 50,000 Balance b/d 100,000 50,000
100,000 50,000 100,000 50,000

Partners’ Current Account


Sage Onion Sage Onion
RM RM RM RM
Balance b/d - 600 Balance b/d 2,000 -
Interest on current account - 30 Interest on capital 5,000 2,500
Drawings 15,500 10,630 Interest on current account 100 -
Interest on drawings 360 280 Salaries 12,000 8,000
Balance c/d 9,340 5,060 Share of profit 6,100 6,100
25,200 16,600 25,200 16,600
Sage and Onion
Statement of Financial Position as at 31 December 20X0

Cost Accumulated Net Book


Depreciation Value
Non-current Assets RM RM RM
Freehold premises 50,000 - 50,000
Fixtures and fittings 15,000 4,500 10,500
65,000 4,500 60,500

Current Assets
Inventory 68,000
Trade receivables 52,400
Less: Allowance for receivables (2,400) 50,000
Prepayments 200
Cash 31,600
149,800
210,300
Capital and Liabilities
Partners’ Capital Accounts
- Sage 100,000
- Onion 50,000 150,000

Partners’ Current Accounts


- Sage 9,340
- Onion 5,060 14,400
164,400

Current Liabilities
Short-term loan 8,700
Trade payables (33,300 + 3,000) 36,300
Accruals 900
45,900
210,300

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