Question

In: Accounting

When distributing profits at the end of 2020 AD between the partners Jamal

When distributing profits at the end of 2020 AD between the partners Jamal, Muhammad and Hassan, it was found that the partner Hassan’s share of the distributed profits (after excluding the partners’ salaries and bonuses and the interest on the partners’ capital) amounted to 10,000 dinars, knowing that the partner Hassan’s share of the profits amounts to half of the share of the partner Jamal and amounts to half Share partner Mohammed. The partners’ salaries and bonuses for the year 2020 AD amounted to 15,000 dinars, the interest on the partners’ capital is 10,000 dinars, there were no interest on withdrawals and no interest on partners’ loans. In light of the above data, the company's net profit as shown in the income statement is

a-50000

b- 25000

c-35000

d- 75000

e- non of about

Solutions

Expert Solution

The detailed answer for the above question is provided below:

 

Step 1/1

 

Share of Hassan -  10000 dinars

 

Share of Jamal - 10000* 2 = 20000

 

Share of Mohammed - 10000*2 - 20000

 

Share of bonus and partner's salaries - 15000

 

 Interest on partner's capital - 10000

 

 

 

The net profit of the partnership firm is d ) 75000

option d

Nabeel answered 1 year ago
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