Module V: Chapter 15 Classwork 18th Total Assets Abdullah Nabiha Samina January 2022 Assets Cash Non-Cash SAR 60,000 SAR 40,000 SAR 50,000 SAR 80,000 SAR 100,000 SAR 50,000 SAR 80,000 ABC Company Revenue Expenses Income Before Taxes 20% Corporate Taxes Income After Taxes Income Tax 10% Income after tax 75,000 Revenue 50,000 Expenses 25,000 Income 5,000 Income Tax 10% 20,000 Income After Tax 2,000 18,000 SARA Accounting Consultancy Partnership 75,000 50,000 25,000 2,500 22,500 Page 1 of 2 Illustration: Nabiha and Abdullah formed a SARA Management Consulting Partnership on January 1, 2021. The fair value of the net assets invested by each partner follows: Cash Accounts Receivable Supplies Office Equipment Accounts Payable Mortgage Payable NABIHA KHAN 25,000 12,000 5,000 35,000 6,000 SAR ABDULLAH KHAN 40,000 10,000 3,000 15,000 12,000 20,000 During the year, Nabiha withdrew 15,000 and Abdullah withdrew 12,000. Net profit for 2021 was 50,000, which is to be allocated based on the original net capital investment. A(1). Prepare journal entries to record the initial investment in the Page 1 of 2 Illustration: Nabiha and Abdullah formed a SARA Management Consulting Partnership on January 1, 2021. The fair value of the net assets invested by each partner follows: Cash Accounts Receivable Supplies Office Equipment Accounts Payable | Mortgage Payable NABIHA KHAN 25,000 12,000 5,000 35,000 6,000 SAR ABDULLAH KHAN 40,000 10,000 3,000 15,000 12,000 20,000 During the year, Nabiha withdrew 15,000 and Abdullah withdrew 12,000. Net profit for 2021 was 50,000, which is to be allocated based on the original net capital investment. A(1). Prepare journal entries to record the initial investment in the partnership for Nabiha Khan. A(1). Prepare journal entries to record the initial investment in the partnership for Abdullah Khan. A(2). Record the withdrawals. A(3). Close the Income Summary and Drawing accounts. What will be the Net Capital Balance of Nabiha and Abdullah at the end of the period