Tam, Tim, Tom, and Sam are in partnership sharing profits in the ratio 6:4:3:2. Their partnership agreement includes: i. Interest on capital is at 13% per annum. ii. Salary to Tom $ 5,000 and Sam $ 8,500 per annum. iii. Interest on drawings is at 5% per annum. iv. The interest rate on the loan by Tam is 6% per annum. Net profit for the year ended 31 December 2019 was $50,000. Assume interest on loan by Tom has been deducted from this amount. Capital balances as of 31 December 2020 were Tam $ 45,000, Tim $30,000, Tom $ 25,000, and Sam $ 15,000. For current accounts balances allocation for Tam$ 12,000, Tim $5,000, Tom$ (4,000) and Sam($2,000). Loan from Tam$ 10,000. Drawings by the partners during the year were: i. Tam $ 10,000 ii. Tim $ 9,000 iii. Tom $ 8,500 iv. Sam $ 7,000 Required: . 1) Show all the interest rate calculations on the answer sheet.
Tam, Tim, Tom, and Sam are in
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