Question
On 1 st March 2020 Mohammed and Ahmed commenced Oil business in Ibri. Mohammed and Ahmed contributed OMR 55,000, OMR 35,000 as their share of
On 1st March 2020 Mohammed and Ahmed commenced Oil business in Ibri. Mohammed and Ahmed contributed OMR 55,000, OMR 35,000 as their share of capital. The partners decided to share their profits in the ratio of 5:3. Ahmed was entitled to a salary of OMR 5,000 p.a. Interest on capital was to be provided @ 3.5% p.a. Mohammed and Ahmed withdraw on 1st September 2020 were OMR 3,025 and OMR 2,050, respectively. The profits of the business after providing salary and interest on capital were OMR 5,000. From the details provided by oil business, can you arrive at the balance of Capital Accounts by using fluctuating Capital Method?
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