This set follows two partners, Hafiz and Jia Wen, through one year of accounts. The same figures appear in every lesson, so you can see how each step feeds the next.
It sits in the partnerships chapter and assumes you have read preparing profit appropriation. Read the facts below first, then open the four lessons.
What are the facts of the set?
- Year end: 31 December. Net profit before appropriation: RM84 000, after all wages paid to employees.
- Fixed capital: Hafiz RM100 000 and Jia Wen RM60 000.
- Agreement: interest on capital 5% per year, Jia Wen salary RM14 400 (RM1 200 a month), interest on drawings 6% per year, and profit shared 3:2 between Hafiz and Jia Wen.
- Hafiz drew RM2 000 on the first day of every month, a total of RM24 000.
- Jia Wen drew RM6 000 on 1 July and RM6 000 on 1 October, a total of RM12 000.
- Opening current accounts: Hafiz RM4 000 credit and Jia Wen RM1 500 credit.
- The firm also pays a clerk RM1 500 a month. That wage is already deducted in the net profit.
What will the set produce?
By the end, the appropriation gives Hafiz RM41 810 and Jia Wen RM42 190, which add to the net profit of RM84 000. The closing current accounts are Hafiz RM21 810 credit and Jia Wen RM31 690 credit.
You do not need to memorise these. Each lesson shows how the figure is found, and the last lesson shows how to check them.
In what order should I read the lessons?
- Distinguishing partner salary from an employee wage expense separates the clerk’s wage from Jia Wen’s salary.
- Separating capital and current account movements posts the entries.
- Explaining interest on drawings works out the two interest figures.
- Checking the residual profit allocation verifies the totals.
Finish with the set’s practice questions. If you want a teacher to go through the full set with you, see online one-to-one Accounting tuition.