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Case 6 Al Khatab and Muhanna are partners sharing profits and losses in the ratio of 3:2. Their capital accounts showed balances of OMR 50,000

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Case 6 Al Khatab and Muhanna are partners sharing profits and losses in the ratio of 3:2. Their capital accounts showed balances of OMR 50,000 and OMR 20,000 respectively on 31st December 2019. Show the treatment of interest on capital for the year ending 31st December 2019 in each of the following conditions. a) If the partnership deed is silent as to the payment of interest on capital and the profit for the year is OMR 10,000. b) If partnership deed provides for interest on capital @8% per annum and the firm incurred a loss of OMR 10,000 during the year. c) If partnership deed provides for interest on capital @8% per annum and the firm earned a profit of OMR 10,000 during a year. d) If the partnership deed provides for interest on capital @8% per annum and the firm earned a profit of OMR 4,000 during (5 marks) the year

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