An Islamic company was established in the form of ALAnan(Haphazard) between Gamal, Khalil and Amer to trade infoodstuffs. Profits are divided between them by 50%, 30% and20% respectively, while the company's capital at the end of theyear is 150000 dinars and the annual purchases amounted to500,000 dinars and the expenses of selling it 25,000 dinars Andthe beginning Inventory of the period is 50,000 dinars, and theending Inventory of the period were estimated at 60,000 dinarsat the market value, as (Gamal withdrew 5,000 dinars, Khalil5,000 dinars, and Amer 5,000 dinars as personal withdrawals) Ifthe sales amount to 500,000 dinars- :Required1) Preparing the income statement?2) Calculate the net profit for each partner?3) What is the balance of the partner's current account foreach partner?4) Calculate the Owners' equity of each partners?

An income statement is a statement prepared by the partnership so that a profit or loss earned by…

1) Preparing the income statement? 2) Calculate the net profit for each partner? 3) What is the balance of the partner's current account for each partner? 4) Calculate the Owners' equity of each partners?

1) Preparing the income statement? 2) Calculate the net profit for each partner? 3) What is the balance of the partner's current account for each partner? 4) Calculate the Owners' equity of each partners?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 3MAD: Deere Company (DE) manufactures and distributes farm and construction machinery that it sells...

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