(a)[1]
State how profits and losses are divided in a partnership when no agreement exists.
(b)[4]
Explain two reasons why you would advise partners to have a written agreement, other than giving a ratio for sharing profits and losses.
(c)[11]
Prepare the income statement for Hamza and Noor for the year ended 31 December 2019.
(d)[4]
Prepare the appropriation account for Hamza and Noor for the year ended 31 December 2019.
(e)[5]
Calculate Hamza’s current account balance at 31 December 2019.
(f)[5]
Advise which option the partners should select. Justify your advice.