Mazin, Mansoor and Malik 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 Mazin is to be paid salary of RO. 12000 pa. and Mansoor commission of RO. 2.500 every 6 months. It also provided that interest on capital be allowed e 6% pa The drawings for the year were: Mazin RO. 6,000, Mansoor RO. 4.000 and Malik RO. 2,000. Interest on drawings was RO. 270 for Mazin, RO. 180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Question: Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts. Based on the above information answer the following '3' questions. (Do not upload any documents in the moodle)

Mazin, Mansoor and Malik 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 Mazin is to be paid salary of RO. 12000 pa. and Mansoor commission of RO. 2.500 every 6 months. It also provided that interest on capital be allowed e 6% pa The drawings for the year were: Mazin RO. 6,000, Mansoor RO. 4.000 and Malik RO. 2,000. Interest on drawings was RO. 270 for Mazin, RO. 180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was RO. 35,660. Question: Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts. Based on the above information answer the following '3' questions. (Do not upload any documents in the moodle)

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 1BD

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Question

Identify which one of the following accounting entry for transfer of net profit at the end of the year:
Oa.
Dr: Profit and Loss account RO 35660
Cr: Partners' Capital Account RO 35660
O b. Dr: Profit and Loss Appropriation account RO 35660
Cr: Profit and Loss account Ro 35660
Oc.
Dr: Profit and Loss account RO 35660
Cr: Profit and Loss Appropriation account RO 35660
d.
Dr: Partner's Capital Account RO 35660
Cr: Profit and Loss account RO 35660
The balance of capital for partner Mansoor at the end of the year will be:
O a.
RO 42270
O b. RO 42720
Ос
RO 47220
O d. RO 40720
Identify which one of the following accounting entry for payment of salary to partner Mazin at the end of the year:
Oa.
Dr: Mazin's salary account RO 1000
Cr: Mazin's capital account RO 1000
O b. Dr. Mazin's Salary account RO 12000
Cr: Mazin's capital account RO 12000

Case 1
Mazin, Mansoor and Malik 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 Mazin is to be paid
salary of RO. 12000 p.a. and Mansoor 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: Mazin RO. 6,000, Mansoor RO. 4,000 and Malik RO. 2,000. Interest on drawings was RO. 270 for
Mazin, RO.180 for Mansoor and RO. 90 for Malik. The net amount of profit as per the profit and loss account for the year ended 2019 was
RO, 35.660.
Question:
Prepare the necessary accounting entries, the profit and loss appropriation account and the partners' capital accounts. Based on
the above information answer the following 3' questions. (Do not upload any documents in the moodle)
Identify which one of the following accounting entry for transfer of net profit at the end of the year:
Oa.
Dr. Profit and Loss account RO 35660
Cr. Partners' Capital Account RO 35660
Ob.
Dr. Profit and Loss Appropriation account RO 35660
Cr. Profit and Loss account Ro 35660
O c. Dr. Profit and Loss account RO 35660
Cr. Profit and Loss Appropriation account RO 35660
d.
Dr: Partner's Capital Account RO 35660
Cr: Profit and Loss account RO 35660
The balance of capital for partner Mansoor at the end of the year will be:
RO 42270
O b. RO 42720
Oc.
RO 47220
Od. RO 40720
Identify which one of the following accounting entry for payment of salary to partner Mazin at the end of the year:
O a
Dr. Mazin's salary account RO 1000
Cr. Mazin's capital account RO 1000
O b. Dr. Mazin's Salary account RO 12000
Cr. Mazin's capital account RO 12000

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