Q3. A, B and C are partners in a partnership firm M/s. Junaidha LLC with capitals...

Q3.

A, B and C are partners in a partnership firm M/s. Junaidha LLC with capitals of OMR 120,000; OMR 72,000 and OMR 60,000 respectively on 1.1.2019. The Partnership Deed of the concern contains the several clauses that the Interest on Capital charged by the partners @ 5.5 % p.a. and the Interest on Drawings charged by the firm @ 2.5 % p.a. Partner A is entitled to get a salary @ OMR 900 per month and Partners B and C have to get 10% commission each on the net profit. Profit and Losses to be shared Up to OMR 13,500 in the ratio of 4:3:2 and Above OMR 13,500 equally. The net profit of the firm for the year ended 31st December 2019 amounts to OMR 83,250 and Bonus paid to A and C are @ OMR 750 each. Drawings of the partners are - A OMR 7,200: B OMR 4,800 and C OMR 3,000.

Q:

a)Prepare Profit and Loss Appropriation Account and

b)Capital Accounts of the partners assuming –

c)Capitals are fixed and

d) Capitals are fluctuating.

Expert Solution

ekkarill92 answered 1 year ago

The partners A, B and C runs a partnership firm M/s. Raga LLC with their capitals...

The partners A, B and C runs a partnership firm M/s. Raga LLC with their capitals of OMR 112,000; rtnership Deed of the business contains PaOMR 67,200 and OMR 56,000 respectively on 1.1.2019. several clauses, which discloses the following information about the partnership arrangement. The firm has to pay Interest on Capital for the partners’ capital @ 5.5 % p.a. and has to receive rom the partners @ 2.5 % p.a. Profit and Losses to be shared Up to OMR...

Partners A, B and C running a partnership firm in the name of M/s. ABC LLC...

Partners A, B and C running a partnership firm in the name of M/s. ABC LLC with their capitals of OMR 60,000, OMR 40,000 and OMR 30,000 and an agreed sharing the profits and losses in the ratio of 3:2:1.respectively on 31.3.2020. The firm’s various assets and liabilities in the books of accounts are – Particular OMR Particular OMR Plant 60,000 Bank Overdraft 25,000 Buildings 100,000 Sundry Creditors 100,000 Furniture 25,000 Premises 40,000 Land 70,000 Machinery 40,000 6% Bonds 50,000...

M/s. Mahima LLC a partnership firm starts the business with total capital of OMR 156,000. The...

M/s. Mahima LLC a partnership firm starts the business with total capital of OMR 156,000. The assets and liabilities of the firm listed in the table below. Name of Account OMR Name of Account OMR Cash 54,000 Bank Loan 48,000 Sundry Debtors 84,000 Bonds 60,000 Stock 30,000 Bills Payable 96,000 Machinery 48,000 Sundry Creditors 120,000 Land 84,000 Bank Overdraft 30,000 Furniture 30,000 General Reserve 60,000 Premises 48,000...

Following information use in Question NO.5& 6 M/s. Mahima LLC a partnership firm starts the business...

Following information use in Question NO.5& 6 M/s. Mahima LLC a partnership firm starts the business with total capital of OMR 156,000. The assets and liabilities of the firm listed in the table below. Name of Account OMR Name of Account OMR Cash 54,000 Bank Loan 48,000 Sundry Debtors 84,000 Bonds 60,000 Stock 30,000 Bills Payable 96,000 Machinery 48,000 Sundry Creditors 120,000 Land 84,000 Bank Overdraft 30,000 Furniture 30,000 General Reserve 60,000 Premises 48,000 Profit & Loss A/C 30,000 Building...

A, B and C are general partners in ABC partnership. X is a debtor to the partnership in the amount of P180,000.

A, B and C are general partners in ABC partnership. X is a debtor to the partnership in the amount of P180,000. A received from the debtor X the sum of P60,000 and issued a receipt identifying the amount collected as P60,000.a. A cannot be compelled to share the P60,000 with B and C.b. A can be compelled to share with B and C their P60,000.c. B and C should automatically sue X to collect the P120,000.d. B and C...

The following is the information extracted from M/s. Jamil LLC, which is run by partners A,...

The following is the information extracted from M/s. Jamil LLC, which is run by partners A, B and C and sharing profits 3:2:1 as on 31.3.2020. Name of Accounts OMR Name of Accounts OMR Cash 63,000 Bank Loan 56,000 Sundry Debtors 98,000 Bonds 70,000 Stock 35,000 Bills Payable 112,000 Machinery 56,000 Sundry Creditors 140,000 Land 98,000 Bank Overdraft 35,000 Furniture 35,000 General Reserve 70,000 Premises 56,000 Profit & Loss A/C 35,000 Building 140,000 A Capital Account 84,000 Plant 84,000 B...

1. . A, B, and C are partners. Each originally contributed $5,000 to the partnership. If,...

1. . A, B, and C are partners. Each originally contributed $5,000 to the partnership. If, after dissolution and liquidation, the firm's assets are $100,000 and its debts to creditors are $40,000, how much will be C's share of the assets if according to the partnership contract they are to be divided equally among the partners? Explain. 2. Without authority from his co-partners B and C, and in breach of their partnership agreement, A assigns a truck owned by the...

Partners A, B, C and D each contribute $100,000 for 25% of the ABCD partnership. The...

Partners A, B, C and D each contribute $100,000 for 25% of the ABCD partnership. The partners all meet the three tests for economic effect, and the four tests for allocation of nonrecourse deductions are met as well. They use the $400,000 cash and $3,600,000 of nonrecourse financing to buy a building that is depreciable over 20 years on a straight line basis. Income equals expenses in all years, except for depreciation, which is allocated completely to D. How much...

A, B and C are equal partners in the ABC partnership which has the following balance...

A, B and C are equal partners in the ABC partnership which has the following balance sheet: Assets Partners’ Capital A.B. F.M.V. A.B. F.M.V. Cash $6,000 $6,000 A $12,000 $18,000 A/R 0 9,000 B 12,000 18,000 Inventory 18,000 18,000 C 12,000 18,000 Land & Building 6,000 12,000 Equipment 6,000 9,000 $36,000 $54,000 $36,000 $54,000 The partnership distributes the $9,000 worth of accounts receivable to A and $18,000 worth of inventory equally ($9,000 each) to B and...

The ABC partnership has three partners, A, B, and C, who each has an equal interest...

The ABC partnership has three partners, A, B, and C, who each has an equal interest in partnership capital, profits, and losses. To pay off expenses incurred by the partnership, C contributed additional capital on October 31 of the current year. As a result of C's contribution, the partners' interests in the partnership capital, profits, and losses changed to 25% for A, 25% for B, and 50% for C. The partnership is an accrual method, calendar year taxpayer. a) If...

Question