Prepare Profit and Loss Appropriation Account and partners’ capital accounts assuming that their capitals are fluctuating.
Prepare Profit and Loss Appropriation Account and partners’ capital accounts assuming that their capitals are fluctuating.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Roaa and Salma were partners in a firm sharing profits in the ratio of their capitals contributed on commencement of business which were OMR 80,000 and OMR 60,000 respectively. The firm stared business on 1-1-2021.
According to the partnership agreement interest on capital and drawings are 12% and 10% p.a. respectively.
Roaa and Salma are to get a monthly salary of OMR 2,000 and OMR 3,000 respectively.
The profits for year ended Dec 31, 2021 before making above appropriation was OMR 100,300.
The drawings of Roaa and Salma were OMR 40,000 and OMR 50,000, respectively.
Prepare Profit and Loss Appropriation Account and partners’ capital accounts assuming that their capitals are fluctuating.
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