Micky, Donald and Minni started a partnership firm on January 1, 2019. They contributed RO120,000, RO 180,000 and RO 240,000 respectively as their capitals and decided to share profits in the ratio of 1:2:3. The partnership deed provided that Micky is to be paid salary of RO 3,000 per month and Donald is to be paid a commission of RO 1,800 per month. It also provided that interest on capital be allowed @ 8% p.a. The drawings for the year were: Micky RO 12,000, Donald RO 18,000 and Minni RO 24,000. Interest on drawings was charged @ 4%. The net amount of profit as per the profit and loss account for the year ended 2019 was RO 142,400.

Required:

Prepare the necessary journal entries relating to Profit and Loss Appropriation.

Question No: 5 10 Marks Micky, Donald and Minni started a partnership firm on January 1, 2019. They contributed RO120,000, RO 180,000 and RO 240,000 respectively as their capitals and decided to share profits in the ratio of 1:2:3. The partnership deed provided that Micky is to be paid salary of RO 3,000 per month and Donald is to be paid a commission of RO 1,800 per month. It also provided that interest on capital be allowed @ 8% p.a. The drawings for the year were: Micky RO 12,000, Donald RO 18,000 and Minni RO 24,000. Interest on drawings was charged @ 4%. The net amount of profit as per the profit and loss account for the year ended 2019 was RO 142,400. Required: Prepare the necessary journal entries relating to Profit and Loss Appropriation