In: Accounting
Hazeer and Hiyam are partners sharing profits in the ratio of 2:1 respectively on 31st December 2019 they
decided to dissolve the partnership. On that day, their balance sheet appeared as follows;
Balance sheet of Hazeer and Hiyam as at 31st December 2019
Liabilities |
Amount |
Assets |
Amount |
|
(OMR) |
(OMR) |
|||
Creditors
|
5000 3,000 |
Vehicle |
12,000 |
|
Reserve Capital |
Debtors |
7,500 |
||
Hazeer |
22,000 |
Stock |
2,500 |
|
Hiyam |
28,000 |
50,000 |
Building |
7,000 |
Machinery Cash at Bank |
3,000 26,000 |
|||
Total |
58,000 |
Total |
58,000 |
You are required to Prepare;
Answer c No, there is a difference between Profit distribution and drawings, drawings can be withdrawn by all or single partner at their choices, however, profit is distributed in all partner at their respective profit sharing ratio.
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