Q.1 Khalid and Khamis shared profits in the ratio of 2:3. Their Balance sheet on 31 December 2020 was as follows: Balance Sheet of Khalid and Khamis as on 31 December, 2020 Liabilities Amount(RO) Assets Amount(RO) Bills Payable 40,000 Cash 16,000 Khamis Loan 32,000 Debtors 80,000 (-) Provision for Doubtful Debts(3,600) 76,400 Profit and Lows 50,000 Stock 109,600 Capital Computer 40,000 Khalid 240,000 Equipment 280,000 Khamis 160,000 522,000 522,000 Khalid and Khamis decided to dissolve the firm on the above date. 1. Debtors Realized for RO 80,000; Stock RO 119,000; Equipment Ro 285,000, 2. Computer was taken over by Khalid RO 33,000 3. Bills Payable were settled at RO 38,000 4. Cost of Realization expenses RO 2,400 5. There was a Vehicle in the Firm which was purchaved from the Partnership Firm Money was not shown in the books of the firm and sold for RO 10,000. 6. Outstanding Electricity Bill of RO 5,000 Write the Necessary Journal Entries and Prepare the Realization Account, Partners Capital Account and Cash Aceount
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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