Mazin, Mansoor and Malik started a partnership firm on January 1, 2019. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Mazin is to be paid salary of RO. 12000 pa. and Mansoor commission of RO. 2.500 every 6 months. It also provided that interest on capital be allowed e 6% pa The drawings for the year were: Mazin RO. 6,000, Mansoor RO. 4.000 and Malik RO. 2,000. Interest on drawings was RO. 270 for Mazin, RO. 180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Question: Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts. Based on the above information answer the following '3' questions. (Do not upload any documents in the moodle)

Mazin, Mansoor and Malik started a partnership firm on January 1, 2019. They contributed RO. 50,000, RO. 40,000 and RO. 30,000 respectively as their capitals and decided to share profits in the ratio of 3:2:1. The partnership deed provided that Mazin is to be paid salary of RO. 12000 pa. and Mansoor commission of RO. 2.500 every 6 months. It also provided that interest on capital be allowed e 6% pa The drawings for the year were: Mazin RO. 6,000, Mansoor RO. 4.000 and Malik RO. 2,000. Interest on drawings was RO. 270 for Mazin, RO. 180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Question: Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts. Based on the above information answer the following '3' questions. (Do not upload any documents in the moodle)

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 9E

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