Saud, Salim and Sulaimon 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 Saud is to be paid salary of RO. 12000 p.a. and Salim commission of RO. 2,500 every 6 months. It also provided that interest on capital be allowed @ 6% p.a. The drawings for the year were: Saud RO. 6,000, Salim RO. 4,000 and Sulaimon RO. 2,000. Interest on drawings was RO. 270 for Saud, RO.180 for Salim and RO. 90 for Sulaimon. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts Identify which one of the following accounting entry for payment of salary to partner Saud at the end of the year: a. Dr: Saud's salary account RO 1000 Cr: Saud's capital account RO 1000 b. Dr: Saud's capital account RO 12000 Cr: Saud's salary account RO 12000 c. Dr: Saud's capital accountRO 1000 Cr: Saud's salary account RO 1000 d. Dr: Saud's Salary account RO 12000 Cr: Saud's capital accountRO 12000
Saud, Salim and Sulaimon 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 Saud is to be paid salary of RO. 12000 p.a. and Salim commission of RO. 2,500 every 6 months. It also provided that interest on capital be allowed @ 6% p.a. The drawings for the year were: Saud RO. 6,000, Salim RO. 4,000 and Sulaimon RO. 2,000. Interest on drawings was RO. 270 for Saud, RO.180 for Salim and RO. 90 for Sulaimon. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts Identify which one of the following accounting entry for payment of salary to partner Saud at the end of the year: a. Dr: Saud's salary account RO 1000 Cr: Saud's capital account RO 1000 b. Dr: Saud's capital account RO 12000 Cr: Saud's salary account RO 12000 c. Dr: Saud's capital accountRO 1000 Cr: Saud's salary account RO 1000 d. Dr: Saud's Salary account RO 12000 Cr: Saud's capital accountRO 12000
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 57P
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Saud, Salim and Sulaimon started a
Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts
Identify which one of the following accounting entry for payment of salary to partner Saud at the end of the year:
a.
Dr: Saud's salary account RO 1000
Cr: Saud's capital account RO 1000
Cr: Saud's capital account RO 1000
b.
Dr: Saud's capital account RO 12000
Cr: Saud's salary account RO 12000
Cr: Saud's salary account RO 12000
c.
Dr: Saud's capital accountRO 1000
Cr: Saud's salary account RO 1000
Cr: Saud's salary account RO 1000
d.
Dr: Saud's Salary account RO 12000
Cr: Saud's capital accountRO 12000
Cr: Saud's capital accountRO 12000
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