Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ahmed and Rashed are in partnership firm sharing profits and losses equally, you are required to prepare the following after taking into account the additional

image text in transcribed
Ahmed and Rashed are in partnership firm sharing profits and losses equally, you are required to prepare the following after taking into account the additional information. Adjusting Entries (2.5 marks) Income Statement for the year ended March 31, 2019 (2.5) Profit and Loss Appropriation Account (3.0) Partners' Capital Accounts (2.5) Balance Sheet (2.5) Trial Balance as of March 31, 2019 Ad AB Rad es Sale 4 Name 15 Mainm VaR Adjustments: Closing stock was valued at OMR 80,000. Depreciate Machinery at 10% p.a. Outstanding salaries and wages were OMR 2,500. Provision for doubtful debts at 5% on Sundry Debtors. Prepaid advertising is OMR 5,000 The following were agreed upon: a) Ahmed is entitled to a salary of OMR 12,000 per year. b) Rashed is to receive commission of 10% of net profit before salaries and interest on capital c) Interest on capital is 5% per annum B. Answer the following questions. (2 marks) 1) Why and how is a new partner admitted in partnership? 2) Explain the treatment of goodwill at the time of the admission of a new partner Ahmed and Rashed are in partnership firm sharing profits and losses equally, you are required to prepare the following after taking into account the additional information. Adjusting Entries (2.5 marks) Income Statement for the year ended March 31, 2019 (2.5) Profit and Loss Appropriation Account (3.0) Partners' Capital Accounts (2.5) Balance Sheet (2.5) Trial Balance as of March 31, 2019 Ad AB Rad es Sale 4 Name 15 Mainm VaR Adjustments: Closing stock was valued at OMR 80,000. Depreciate Machinery at 10% p.a. Outstanding salaries and wages were OMR 2,500. Provision for doubtful debts at 5% on Sundry Debtors. Prepaid advertising is OMR 5,000 The following were agreed upon: a) Ahmed is entitled to a salary of OMR 12,000 per year. b) Rashed is to receive commission of 10% of net profit before salaries and interest on capital c) Interest on capital is 5% per annum B. Answer the following questions. (2 marks) 1) Why and how is a new partner admitted in partnership? 2) Explain the treatment of goodwill at the time of the admission of a new partner

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Property Companies An Industry Accounting And Auditing Guide

Authors: Accountancy Books

1st Edition

1853558079, 978-1853558078

More Books

Students also viewed these Accounting questions