Assignment Topic Question No:1 Mr. Suhail and Mr. Said decided to start a partnership business. They drafted a partnership deed with the help of a consultant and started the business on 01.11.2020 Some of the key extracts of the partnership deed is given as follows: Resolved that. a. Each partner is to bring in OMR 15,000 as capital b. Each partner is to get 5% interest on capital c. Mr. Suhail is entitled to get a salary of OMR 400 per month d. Firm is entitled to charge 6% interest per annum on partner's drawings. Summary of transactions: November: 2020 a. Capital contribution: Mr. Suhail -OMR 15000; Mr. Said: OMR 15000 b. Purchase of goods- OMR 8,000 c. Sales of goods- OMR 18,000 d. Wages- OMR 200 e. Salary to employees- OMR 1,200 f. Other administrative expenses- OMR 800 g. Rent of building- OMR 1,000 h. Electricity charges- OMR 15 i. Water charges- OMR 5 j. Travelling expenses- OMR 50 k. Furniture purchase- OMR 1,500 1. Electrical fittings- OMR 200 m. Drawings of partners-: Mr. Suhail -OMR 200; Mr. Said; OMR 150 n. Salary to Mr. Suhail- OMR 400
Assignment Topic Question No:1 Mr. Suhail and Mr. Said decided to start a partnership business. They drafted a partnership deed with the help of a consultant and started the business on 01.11.2020 Some of the key extracts of the partnership deed is given as follows: Resolved that. a. Each partner is to bring in OMR 15,000 as capital b. Each partner is to get 5% interest on capital c. Mr. Suhail is entitled to get a salary of OMR 400 per month d. Firm is entitled to charge 6% interest per annum on partner's drawings. Summary of transactions: November: 2020 a. Capital contribution: Mr. Suhail -OMR 15000; Mr. Said: OMR 15000 b. Purchase of goods- OMR 8,000 c. Sales of goods- OMR 18,000 d. Wages- OMR 200 e. Salary to employees- OMR 1,200 f. Other administrative expenses- OMR 800 g. Rent of building- OMR 1,000 h. Electricity charges- OMR 15 i. Water charges- OMR 5 j. Travelling expenses- OMR 50 k. Furniture purchase- OMR 1,500 1. Electrical fittings- OMR 200 m. Drawings of partners-: Mr. Suhail -OMR 200; Mr. Said; OMR 150 n. Salary to Mr. Suhail- OMR 400
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 39P
Related questions
Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Transcribed Image Text:Assignment Topic
Question No:1
Mr. Suhail and Mr. Said decided to start a partnership business.
They drafted a partnership deed with the help of a consultant and
started the business on 01.11.2020
Some of the key extracts of the partnership deed is given as follows:
Resolved that.
a. Each partner is to bring in OMR 15,000 as capital
b. Each partner is to get 5% interest on capital
c. Mr. Suhail is entitled to get a salary of OMR 400 per month
d. Firm is entitled to charge 6% interest per annum on partner's
drawings.
Summary of transactions:
November: 2020
a. Capital contribution: Mr. Suhail -OMR 15000; Mr. Said: OMR
15000
b. Purchase of goods- OMR 8,000
c. Sales of goods- OMR 18,000
d. Wages- OMR 200
e. Salary to employees- OMR 1,200
f. Other administrative expenses- OMR 800
g. Rent of building- OMR 1,000
h. Electricity charges- OMR 15
i. Water charges- OMR 5
j. Travelling expenses- OMR 50
k. Furniture purchase- OMR 1,500
1. Electrical fittings- OMR 200
m. Drawings of partners-: Mr. Suhail -OMR 200; Mr. Said; OMR
150
n. Salary to Mr. Suhail- OMR 400
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Introduction:
VIEWTrading Account as on November 30, 2020:
VIEWProfit and loss Account as on November 30, 2020:
VIEWProfit and Loss appropriation A/C as on November 30, 2020:
VIEWPartner's Capital Account as on November 30, 2020:
VIEWBalance Sheet as on November 30, 2020:
VIEWWorking Note 1: Cash A/C:
VIEW
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