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Case 1 Mazin, Mansoor and Malik started a partnership firm on January 1, 2019. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as

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Case 1 Mazin, Mansoor and Malik started a partnership firm on January 1, 2019. 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 Mazin is to be paid salary of RO. 12000 p.a. and Mansoor commission of RO. 2,500 every 6 months. It also provided that interest on capital be allowed @ 6% p.a. The drawings for the year were: Mazin RO. 6,000, Mansoor RO. 4,000 and Malik RO. 2,000. Interest on drawings was RO. 270 for Mazin, RO.180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Question: Prepare the necessary accounting entries, the profit and loss appropriation account and the partners capital accounts. Based on the above information answer the following '3' questions. (Do not upload any documents in the moodle) Identify which one of the following accounting entry for payment of salary to partner Mazin at the end of the year: a. Dr: Mazin's capital account RO 1000 Cr: Mazin's salary account RO 1000 O b. Dr: Mazin's salary account RO 1000 Cr: Mazin's capital account RO 1000 . Dr: Mazin's Salary account RO 12000 Cr: Mazin's capital account RO 12000 Od. Dr: Mazin's capital account RO 12000 Cr: Mazin's salary account RO 12000 The accounting treatment of commission of RO 5000 paid to partner Mansoor will be: a. Debited to Mansoor's capital account O b. Debited to profit and loss account Oc Credited to profit and loss appropriation account O d. Credited to Mansoor's capital account The amount of interest on capital the partners are eligible to receive during the year will be: O a Mazin RO 4000, Mansoor RO 2000, Malik RO 1200 O b. Mazin RO 3000, Mansoor RO 2400, Malik RO 1800 Oc Mazin RO 6000, Mansoor RO 4800, Malik RO 3600 O d. Mazin RO 2400, Mansoor RO 1800, Malik RO 2400

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