Ram and Rahim start business with capital of INR. 50,000 and 30,000 on 1st January, 2016. Rahim is entitled to a salary of INR. 400 per month. Interest is allowed on capitals and is charged on drawings at 6% per annum. Profits are to be distributed equally after the above noted adjustments. During the year, Ram withdrew INR. 8,000 and Rahim withdrew INR. 10,000. The profit for the year before allowing for the terms of the Partnership Deed came to INR. 30,000. Assuming the capitals to be fixed, prepare the Profit and Loss Appropriation Account and prepare the Capital and Current Accounts of Ram and Rahim. Based on these Accounts information, answer the below mentioned questions. Profit transferred to Ram's Current Account.......... a. 12,570 b. 10,470 c. 11,350 d. 9,575 Question 2 Profit transferred to Rahim's Current Account........ a. 10,470 b. 11,342 c. 9,575 d. 12,570 Question 3 Ram's Capital Account Balance....... a. 40,000 b. 45,500 c. 47,700 d. 50,000 Question 4

Ram and Rahim start business with capital of INR. 50,000 and 30,000 on 1st January, 2016. Rahim is entitled to a salary of INR. 400 per month. Interest is allowed on capitals and is charged on drawings at 6% per annum. Profits are to be distributed equally after the above noted adjustments. During the year, Ram withdrew INR. 8,000 and Rahim withdrew INR. 10,000. The profit for the year before allowing for the terms of the Partnership Deed came to INR. 30,000. Assuming the capitals to be fixed, prepare the Profit and Loss Appropriation Account and prepare the Capital and Current Accounts of Ram and Rahim. Based on these Accounts information, answer the below mentioned questions. Profit transferred to Ram's Current Account.......... a. 12,570 b. 10,470 c. 11,350 d. 9,575 Question 2 Profit transferred to Rahim's Current Account........ a. 10,470 b. 11,342 c. 9,575 d. 12,570 Question 3 Ram's Capital Account Balance....... a. 40,000 b. 45,500 c. 47,700 d. 50,000 Question 4

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter10: Individuals: Income, Deductions, And Credits

Section: Chapter Questions

Problem 16P

See similar textbooks

Similar questions

Amrinder, Mahinder and Joginder are partners in a firm. Mahinder retires from the firm. On his date of retirement, Rs. 60,000 becomes due to him. Amrinder and Joginder promise to pay him in instalments every year at the end of the year. Prepare Mahinder’s Loan Account in the following cases:1. When payment is made four yearly instalments plus interest @ 12% p.a.on the unpaid balance.2. When they agree to pay three yearly instalments of Rs. 20,000 includinginterest @ 12% p.a on the outstanding balance during the first three yearsand the balance including interest in the fourth year.3. When payment is made in 4 equal yearly instalment’s including interest @12% p.a. on the unpaid balance.
Jones invests USD 250.000 in a building society account. At the end of the year her account iscredited with 2% interest. How much interest had he earned in the year?
Ram and Rohan and Rohit are partners in a firm, sharing profits and losses equally. Each of them withdraw rs. 1000 quarterly. If intrest is to be charged on drawings @ 6% pet annum, the calculation of average period and interest on drawings will be as follows: A) if the amount is withdrawn at the beginning of each month B) if the amount is withdrawn in the middle of the month C) if the amount is withdrawn at the end of each month?
Lara has made ₱1,000 monthly payments to a Rotating Credit and Savings Association (ROSCA) to Mar. 13, 2023 but was dissolved as agreed by all contributors. The ROSCA management has agreed to return her money's worth including interest of 0.5% per month on Jun. 13, 2023. How much is the total she can receive?
On June 1st, 2014 Brandon invested $4 500 in a GIC at an annual interest rate that was compounded quarterly. On June 1st, 2018 Nihal invested $5 500 into the same GIC at the same annual interest rate, also compounded quarterly. On June 1st of 2020, they each cashed in their GIC and received the exact same amount. What annual interest rate was the GIC earning? Express answer as a percentage, rounded to 2 decimals.
Leila borrowed PhP 60,000 with an interest of 3% from her collegue on January 15 and then she agreed to pay the entire amount including the interest on April 20 of the following year. This is leap year. Find the accumulated amount of the loan using ordinary simple interest.
Morgana deposits £1000 into her bank account on the 1st of January every year with the first deposit being on 1st January 2016. The bank adds 3% interest to her deposit every 31st December. (a) Show that, after interest has been paid on 31st of December 2018, the balance in her account (assuming no withdrawals and no other deposits during this time) is 1000 × 1.033 + 1000 × 1.032 + 1000 × 1.03 (b) During which year (assuming that she continues in this fashion and her bank continues to pay 3%) will her balance exceed £50,000?
On May 11, Ali joined a gulf club. His bank will automatically deduct BD 120 from his checking account at the end of each month, and deposit it into his gulf club account, where it will earn 8% annual interest. The account comes to term on October 7. Find the following: a. Find the future value of Ali's gulf club account. b. Find Ali's total contribution to the account. C. Find the total interest earned on the account.
Mrs. Lim borrowed P400,000 from Mr. Sy on August 1, 2008 and P100,000 on August 1, 2010, agreeing that money is worth 5% compounded annually. Mrs. Lim paid P100,000 on August 1, 2011, P80,000 on June 1, 2012 and P140,000 on August 1, 2013. What additional sum should Mrs. Lim pay on August 1, 2016 to discharge all remaining liability?
Rahul deposits $5000.00 in an account on April 1, 2016 which earns 6.25% compounded quarterly. How much is in the account on September 15, 2021 if simple interest is allowed for part of a conversion period?Genuine answers only. I will provide an upvote if answered it correctly. answer should be good understanding language
On June 1, Mia deposited $3,800 in an MMDA that pays 4% interest. On October 31, Mia invested $2,700 in a three-month CD that pays 6%. At the end of the year, how much interest will Mia have earned, assuming she hasn't taken anything out of the money market deposit account? Assuming she hasn't taken anything out of the money market deposit account, the amount of interest Mia will have earned is? (Round to the nearest cent)
11. Amber and Berta share profits and losses equally after a 10% interest on their average capital balances. Consider additional capital contributions and permanent withdrawals as made at the end of the month. Total net income after tax for 2019 is P320,000. (see attached image, kindly answer it based in your knowledge, thank you!) (Note: you already asnwered the first letter, kindly answer the letter b, please. thank youuu!) Direction: Give the entries to record the distribution based on the following two independent cases: b) All changes in capital and drawing should be considered in determining the average capital balances.