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Q.2. A, B and Care partners started a partnership firm M/s. Amla LLC with capitals of OMR 88,000; OMR 52,800 and OMR 44,000 respectively on
Q.2. A, B and Care partners started a partnership firm M/s. Amla LLC with capitals of OMR 88,000; OMR 52,800 and OMR 44,000 respectively on 1.1.2019. Partnership Deed of the firm contains various clauses that the Partner A has to get a salary @ OMR 660 per month for his services rendered to the firm. Partners B and C gets 10% commission each on the net profit and the Bonus to be paid to Partners A and C@ OMR 550 each. Further the document gives that Interest on Capital paid by the firm @ 5.5 % p.a. to the partners and the partners have to pay Interest on Drawings @ 2.5% p.a to the firm., Profit and Losses to be shared Up to OMR 9,900 in the ratio of 4:3:2 and Above OMR 9,900 equally. The Drawings of the partners are - A OMR 5,280; B OMR 3,520 and C OMR 2,200 and the net profit of the firm for the year ended 31st December 2019 amounts to OMR 61,050. (2.5 Marks) a. Prepare Profit and Loss Appropriation Account and b. Capital Accounts of the partners assuming - a. Capitals are fixed and b. Capitals are fluctuating. (2.5 Marks)
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