On Jan 1, 2019 Nabil Gaber and Ali agree to start a partnership named Saudi consultation. The capital of the partnership is SR 120,000 and is divided between partners equally (the capital of each partner is SR40,000) the partners presented their shares of capital as follows: Nabil presented SR40,000 cash Gaber presented the following assets: cash 15,000 - car SR25,000 Ali presented his proprietorship assets and liabilities as follows: Book Value Fair Value Cash 8000 8,000 Inventory 15.000 7,000 Equipment 40.000 30.000 Accumulated depreciation 10.000 Accounts payable 8.000 5,000 Prepare the required entries and the starting statement of financial position Date Debit Credit Jan. 1 Jan. 1 Jan 1 The balance sheet at Jan. 1 2019 (statement of financial position) Assets Liabilities and Equity Question 2: Khalid and Hashem are co-partners in the Alexandria Company. According to the partnership agreement the division of net income is 60%: 40% respectively Capital balances on January 1, 2019 were Khalid $70,000, and Hashem $50,000. The net income for 2019 is $40,000. Drawings during the year were Khalid $4,000, and Hashem $5,000. Required: Journalize the allocation of net income. Prepare the equity statement. Distribution of net income Khalid Hashem Total The journal entry to record profit distribution: Date Dec. 31 Debit Credit The equity statement Khalid Hashem Total Date