You are given the following information: Salary to partner A - OMR 300 Capital account: A - OMR 30,000 B -OMR 20,000 Interest on capital - 5% Net profit as per P/L a/c OMR 20000 Profit sharing ratio of partners - 3:2 Share of profit to be credited to A will be: a

Accounting Nov 16, 2020

You are given the following information: Salary to partner A - OMR 300 Capital account: A - OMR 30,000 B -OMR 20,000 Interest on capital - 5% Net profit as per P/L a/c OMR 20000 Profit sharing ratio of partners - 3:2 Share of profit to be credited to A will be: a. OMR 10,450 b. OMR 7,000 C. OMR 8,500

Expert Solution

Share of profit to be credited to A will be OMR 12,120ABSalary to partner 300Interest on Capital 1,500 1,000Balance Net profit distributed 10,320 6,880(20,000 - 300 - 2,500) ratio 3:2Total 12,120 7,880

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