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On 1st Feb 2020 Hala, Shima and Shadha started a Abaya Company. They contributed OMR 10,000 OMR 8,000 and OMR 6,000 respectively as their capitals
On 1st Feb 2020 Hala, Shima and Shadha started a Abaya Company. They contributed OMR 10,000 OMR 8,000 and OMR 6,000 respectively as their capitals and decided to share profits in the ratio of 5:4:3. The Partnership Deed provided that Shima is to be paid Salary of OMR 650 p.m. and Shadha Commission of OMR 4,000. It also provided that Interest on Capital be allowed @ 3% p.a. The Drawings for the year were: Hala OMR 100, Shima OMR 80 and Shadha OMR 60. Interest on Drawings was Hala OMR 25, Shima OMR 15 and Shadha OMR 10 . The net amount of profit as per the Profit and Loss Account for the year ended 2020 was OMR 11,255. The company is interested to prepare profit and loss appropriation account for sharing the profit or loss in their profit sharing ratio
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