SAMPLE QUIZ 2 - PARTNERSHIP Name : ____________________________________________ ID No : ______________

Answer all questions. Wanita Sholehah Sdn Bhd was formed with an authorised capital of 500,000 ordinary shares of RM1 each to take o er the !usiness of "hohwah and "hofhah, a partnership, as from #1 $uly %00&' (he )alance "heet of the partnership of "hohwah and "hofhah as at 1 *u+ust %00, was as follows :
Shohwah an Sho!hah "alan#e Sheet as at $ Au%ust 2&&' -and .ffice e/uipment -ess : *ccumulated depreciation 3urniture and fittin+s -ess : *ccumulated depreciation Motor ehicles -ess : *ccumulated depreciation "tock De!tors )ank RM 100,000 %1,000 0#,5001 %4,%00 0,,%001 55,000 0%,,0001 12,500 1,,000 %2,000 1&,000 12,000 ,,000 %04,500 5apital : "hohwah 5apital : "hofhah 5urrent : "hohwah 5apital : "hofhah (rade paya!les 20,000 50,000 #2,000 %&,000 %0,500 %04,500

Note ( (he purchase price was to !e dischar+ed !y the issue of : 5ash RM 65,000 %1,,250 ordinary shares at 1%7 premium

8ole9 :oly;(ech M*R*, 8uala -umpur <

)*N+I,ENTIAL
"5"=3*R #00=>ui? %=$uly;No em!er %00&

itional in!or-ation ( 1' (his new company was to purchase all the assets 0e@cept bank and office equipment1 of the partnership, and the lia!ility was not taken o er' %' (he assets taken o er were re alued as follows : RM -and %10,000 Motor ehicles %5,000 #' *llowance for dou!tful de!ts was estimated at 107 of de!tors and RM %,000 of the stock was o!solete and was to !e written offA 6' (he office e/uipment would !e taken o er !y "hofhah at its !ook alue' 5' (he creditors a+reed to accept RM1,,000 in full settlement of the amount due to them' 4' Banita "holehah "dn )hd a+reed to pay for the cost of windin+ up, which amounted to RM#,500' 2' "hohwah and "hofhah ha e a+reed to di ide the ordinary shares accordin+ to their profit sharin+ ratio of #:% respecti ely' (he remainin+ !alances in their capital accounts are to !e satisfied !y cash at !ank' ,' 3ormation e@penses of Banita "holehah "dn )hd amounted to RM#,000 and after the con ersion, Banita "holehah )hd was to issue another 150,000 ordinary shares at par'

Require ( a1 5alculate the purchase price and purchase consideration' 0# marks1 !1 :repare the realisation account, the capital account, purchaser account and !ank account in the !ooks of "hohwah and "hofhah' 011 marks1 c1 )alance "heet of Banita "holehah "dn )hd' immediately after the con ersion' 06 marks1 d1 "tate any two 0%1 reasons for !usiness com!inations' 0% marks1 .Total ( 2& -ar/s0

8ole9 :oly;(ech M*R*, 8uala -umpur <

)*N+I,ENTIAL
"5"=3*R #00=>ui? %=$uly;No em!er %00&