Corporate Accounting 1

(100 * 5M = 50 MARKS) Q1. Women have been encouraged throughout the world to be entrepreneurs. Many reasons, some of them being to support themselves and their families; to attain the fulfillment of having started something on their own and to satisfy their desire for financial independence. Women not only create jobs for themselves and others, but also work toward growing their businesses, and constantly innovating new products and services. One such example was the partnership venture of Ms. Khazina, Ms. Noof , Ms. Razan and Ms. Kawther. This partnership firm was called as Star nursery". Based in Al Hail since inception in 2014, this SME concentrated on providing various plants for gardening as well as plants for interior decoration in residential and commercial establishments. Women entrepreneurs are faced with multiple challenges like self-confidence, availability of time, family issues etc. In 2020, family issues started cropping up with Ms Kawther. She could not give her best in the company and was constantly being nagged and asked upon to quit. As the company could not afford to lose out on financial support being provided by Kawther, the company has plans to rope in a new partner Ms. Hajer. You are consultant in Muscat and are required to explain the settlement of financials and corrections taking place when one partners quits and the other joins. (5Marks)