Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are required to record the necessary journal entries relating to appropriation of profit and prepare the profit and loss appropriation account and the partners'

You are required to record the necessary journal entries relating to appropriation of profit and prepare the profit and loss appropriation account and the partners' capital accounts under both fixed and flexible capital method. 2. A. Show how the following items will appear in the capital accounts of the partners Ali and Ahmed when their capital is a) fixed b) fluctuating. Particulars Capital on 1.4.2019 Drawings during 2019-2020 Interest on drawings Interest on capital Partner's salary Commission Share of profit for 2019-20 Ali (RO) Ahmed (RO) 90,000 70,000 12,000 9,000 360 5,400 270 4,200 12,000 --- 6,000 6,000 4,000 B. Rima and Sami were partners in a firm sharing profits in the ratio of their capitals contributed on commencement of business which were RO. 240,000 and RO. 180,000 respectively. The firm stared business on April 1, 2019. According to theimage text in transcribed

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

Introduction To Financial Accounting

Authors: Anne Marie Ward, Andrew Thomas

9th Edition

1526803003, 978-1526803009

More Books

Students also viewed these Accounting questions