Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

. The second question (4 marks): The agreement between the partners Asim, Wael and Murad stipulates the distribution of profits and losses between them in

. The second question (4 marks): The agreement between the partners Asim, Wael and Murad stipulates the distribution of profits and losses between them in a ratio of 3: 2, respectively, and the following are some data extracted from the companys records for the year 2020 AD: The interest of Asims withdrawals is 2000 dinars, which he paid in cash during the year. The interest on the loan obtained by the company from partner Wael 1200 dinars was paid in cash during the year. The interest on the loan that the partner Murad obtained from the company is 2,200 dinars, which he paid during the year by check. The partners salary, Assem Al-Shihri, is 1500 dinars. No part of it has been paid to him during the year. The interest on the partners capital is 12000 dinars, distributed among them in the proportion of profits and losses, not part of which was paid during the year. The company's net profit as it appeared in the income statement is 30,000 dinars. Required: 1. Prepare a profit and loss measurement statement, and determine the net profit (loss) transferred from the measurement stage to the distribution stage. 2. Preparing a profit and loss distribution list, specifying the net profit (loss) distributed among the partners and making the necessary entry for that.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Called To Account Financial Frauds That Shaped The Accounting Profession

Authors: Paul M. Clikeman

3rd Edition

1138327085, 9781138327085

More Books

Students also viewed these Accounting questions

Question

Identify types of equity securities that are similar to debt.

Answered: 1 week ago

Question

Avoid evasiveness. Be direct with your answers when possible.

Answered: 1 week ago