Question 2

Ahmed, Mohammed, and Mahmood invested to establish a company for imports Hardware Tools. They decided to share capital and distributed the profits in equally. The total capital SR 270,000. Ahmed, Mohammed paid their share in partnership SR 180,000, and Ahmed paid SR 60,000 his full share.

The journal entries of the initial investments under Bonus Method:

A.

	Questions	Dr	Cr
C	Capital A/c Ahmed capital Mohammed Capital Mahmood Capital	240,000	80,000 80,000 80,000

B.

	Questions	Dr	Cr
A	Investment A/c Ahmed capital Mohammed Capital Mahmood Capital	240,000	80,000 80,000 80,000

C.

	Questions	Dr	Cr
D	bank A/c Ahmed capital Mohammed Capital Mahmood Capital	240,000	90,000 90,000 60,000

D.

	Questions	Dr	Cr
B	Bank A/c Ahmed capital Mohammed Capital Mahmood Capital	240,000	80,000 80,000 80,000