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 2 years ago

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