Q1. The partnership of Ibrahim and Rawan has the following provisions: • Ibrahim and Rawan receive salary allowances of SAR 50,000 and SAR 15,000, respectively. Interest is imputed at 5% on the average capital investment. Any remaining profit or loss is shared between Ibrahim and Rawan in a 3:1 ratio, respectively. Average Capital investments: Ibrahim, SAR 300,000; Rawan, SAR 150, 000 Net income SAR 300,000 Required: pass journal entry to allocate the profit between Ibrahim and Rawan

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Q1. The partnership of Ibrahim and Rawan has the following provisions: • Ibrahim and Rawan
receive salary allowances of SAR 50,000 and SAR 15,000, respectively.⚫ Interest is imputed at
5% on the average capital investment. • Any remaining profit or loss is shared between
Ibrahim and Rawan in a 3:1 ratio, respectively. ⚫ Average Capital investments: Ibrahim, SAR
300,000; Rawan, SAR 150, 000 Net income SAR 300,000 Required: pass journal entry to
allocate the profit between Ibrahim and Rawan
Transcribed Image Text:Q1. The partnership of Ibrahim and Rawan has the following provisions: • Ibrahim and Rawan receive salary allowances of SAR 50,000 and SAR 15,000, respectively.⚫ Interest is imputed at 5% on the average capital investment. • Any remaining profit or loss is shared between Ibrahim and Rawan in a 3:1 ratio, respectively. ⚫ Average Capital investments: Ibrahim, SAR 300,000; Rawan, SAR 150, 000 Net income SAR 300,000 Required: pass journal entry to allocate the profit between Ibrahim and Rawan
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