Q, R and S carry on business sharing the profits in the ratio of 2:3:4 respectively. Capitals as on 1st Jan 2020 are Q is OMR 20,000, R is OMR 30,000 and S is OMR 40,000. Calculate Total Profit to be divided among partners when average profits of the preceding 3 years were Profit 2017 OMR 50,000 Loss 2018 OMR 40,000 and 2019 Pro OMR 30,000?

Q, R and S carry on business sharing the profits in the ratio of 2:3:4 respectively. Capitals as on 1st Jan 2020 are Q is OMR 20,000, R is OMR 30,000 and S is OMR 40,000. Calculate Total Profit to be divided among partners when average profits of the preceding 3 years were Profit 2017 OMR 50,000 Loss 2018 OMR 40,000 and 2019 Pro OMR 30,000?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
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