The withdrawal of capital by a partner from the business of partnership will be:a.Debited to partners' capital accountb.Debited to profit and loss appropriation accountc.Credited to profit and loss accountd.Credited to partners' capital accountThe amount of drawings taken by each partner will be:a.Debited to partners' current accountb.Debited to profit and loss appropriation accountc.Credited to partners' current accountd.Credited to profit and loss accountThe closing balances of partners' current account will be:a.X RO 59784 (Dr), Y RO 17825 (Cr), Z RO 37622 (Dr)b.X RO 58748 (Dr), Y RO 16852 (Cr), Z RO 36620 (Dr)c.X RO 58784 (Dr), Y RO 16825 (Cr), Z RO 36622 (Dr)d.X RO 58984 (Dr), Y RO 16925 (Dr), Z RO 36626 (Dr) X, Y and Z were the partners in a partnership firm. The following information were relating to the business at the end of the year 2019:Capital balance of partners X, Y, Z as on 1st January, 2019 was RO 120000, RO 80000 and RO 60000 respectively.i.Current account balance of partners as on 1st January, 2019: X: RO 45500 (Cr),Y: RO 32600 (Dr)Z: RO 22100 (Cr)ii.Drawings taken by the partners during the year was: X: RO 8800Y: RO 7500Z: RO 5400iv.Interest on drawings was @ 7% and interest on capital was RO 5%V.Partner X entitled to a salary of RO 3200 per year and Partner Y entitled to a salary of RO 150 per month.vi.Partner has earned a commission of RO 3800vii.Partner Z has paid an additional capital of RO 7000 and partner X has withdrawn the capital of RO 24000vii.There was a profit of RO 45000 which was transferred from profit and loss appropriation account and partners X, Y, Z sharedthat profit in the ratio of 3:4:3 respectively.

Given are the capital and current balances

Answered: The withdrawal of capital by a partner…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 20P

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The withdrawal of capital by a partner from the business of partnership will be: a. Debited to partners' capital account b. Debited to profit and loss appropriation account c. Credited to profit and loss account d. Credited to partners' capital account The amount of drawings taken by each partner will be: a. Debited to partners' current account b. Debited to profit and loss appropriation account c. Credited to partners' current account d. Credited to profit and loss account The closing balances of partners' current account will be: a. X RO 59784 (Dr), Y RO 17825 (Cr), Z RO 37622 (Dr) b. X RO 58748 (Dr), Y RO 16852 (Cr), Z RO 36620 (Dr) c. X RO 58784 (Dr), Y RO 16825 (Cr), Z RO 36622 (Dr) d. X RO 58984 (Dr), Y RO 16925 (Dr), Z RO 36626 (Dr)

X, Y and Z were the partners in a partnership firm. The following information were relating to the business at the end of the year 2019:
Capital balance of partners X, Y, Z as on 1st January, 2019 was RO 120000, RO 80000 and RO 60000 respectively.
i.
Current account balance of partners as on 1st January, 2019: X: RO 45500 (Cr),
Y: RO 32600 (Dr)
Z: RO 22100 (Cr)
ii.
Drawings taken by the partners during the year was: X: RO 8800
Y: RO 7500
Z: RO 5400
iv.
Interest on drawings was @ 7% and interest on capital was RO 5%
V.
Partner X entitled to a salary of RO 3200 per year and Partner Y entitled to a salary of RO 150 per month.
vi.
Partner has earned a commission of RO 3800
vii.
Partner Z has paid an additional capital of RO 7000 and partner X has withdrawn the capital of RO 24000
vii.
There was a profit of RO 45000 which was transferred from profit and loss appropriation account and partners X, Y, Z shared
that profit in the ratio of 3:4:3 respectively.

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