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Ali, Hamid and Ahmed started a partnership firm on January 1, 2001. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as their
Ali, Hamid and Ahmed started a partnership firm on January 1, 2001. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Al is to be paid salary of RO. 1,000 p.m. and Hamid commission of RO. 5,000. It also provided test on capital be allowed @ 6% p.a. The drawings for the year were: Ali RO. 6,000, Hamid RO. 270 for Ali, RO.180 for Hamid and and loss account for the year ended 2001 and Ahmed RO. 2,000. Interest on drawings was Shmed. The net amount of profit as per the profit
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