Ahmed, Amir and Almutaz are partners sharing profits and losses in the ratio of 1:1:1 respectively. Almutaz retires from the firm on 1st May 2020. After his retirement, his capital account shows a credit balance of RO 200,000 after necessary adjustments made. Identify from the following which journal entries the partnership firm pass, When the amount due is not paid immediately. a. Almutaz Capital A/c Dr 200,000 To Bank A/c Cr 50,000 To Almutaz Loan A/c Cr 150,000 O b. Almutaz Capital A/c Dr 200,000 To Bank A/c Cr 200,000 c. Almutaz Capital Dr 200,000 To Almutaz Loan A/c Cr 200,000 O d. None of the options
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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