Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I want this same example but with different numbers for different company I want to explain the same as this and a table as well

I want this same example but with different numbers for different company
image text in transcribed
image text in transcribed
I want to explain the same as this and a table as well
1. A. Ali, Hamid and Ahmed started a partnership firm on January 1, 2019. They contributed RO. 75,000 , RO. 60,000 and RO. 45,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Ali is to be paid salary of RO. 1,500 p.m. and Hamid commission of RO. 7,500 . It also provided that interest on capital be allowed @ 6\% p.a. The drawings for the year were: Ali RO. 9,000, Hamid RO. 6,000 and Ahmed RO. 3,000. Interest on drawings was RO. 405 for Ali, RO. 270 for Hamid and RO. 135 for Ahmed. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 54,990. You are required to record the necessary journal entries relating to appropriation of profit and prepare the profit and loss appropriation account and the partners' capital accounts under both fixed and flexible capital method. 1. A. Ali, Hamid and Ahmed started a partnership firm on January 1, 2019. They contributed RO. 75,000 , RO. 60,000 and RO. 45,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Ali is to be paid salary of RO. 1,500 p.m. and Hamid commission of RO. 7,500 . It also provided that interest on capital be allowed @ 6\% p.a. The drawings for the year were: Ali RO. 9,000, Hamid RO. 6,000 and Ahmed RO. 3,000. Interest on drawings was RO. 405 for Ali, RO. 270 for Hamid and RO. 135 for Ahmed. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 54,990. You are required to record the necessary journal entries relating to appropriation of profit and prepare the profit and loss appropriation account and the partners' capital accounts under both fixed and flexible capital method

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

The Customer Base Audit The First Step On The Journey To Customer Centricity

Authors: Peter Fader, Bruce G.S. Hardie, Michael Ross

1st Edition

1613631618, 978-1613631614

More Books

Students also viewed these Accounting questions