33) The withdrawal of capital by a partner from the business of partnership will be: a. Credited to profit and loss account b. Debited to partners' capital account c. Credited to partners' capital account d. Debited to profit and loss appropriation account

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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33) The withdrawal of capital by a partner from the business of partnership will be:
a.
Credited to profit and loss account
b.
Debited to partners' capital account
c.
Credited to partners' capital account
d.
Debited to profit and loss appropriation account
Case 2
X, Y and Z were the partners in a partnership firm. The following information were relating to the business at the end of the year 2019:
i.
Capital balance of partners X, Y, Z as on 1st January, 2019 was RO 120000, RO 80000 and RO 60000 respectively.
i.
Current account balance of partners as on 1st January, 2019: X: RO 45500 (Cr),
Y: RO 32600 (Dr)
Z: RO 22100 (Cr)
ii.
Drawings taken by the partners during the year was: X: RO 8800
Y: RO 7500
Z: RO 5400
iv.
Interest on drawings was @ 7% and interest on capital was RO 5%
V.
Partner X entitled to a salary of RO 3200 per year and Partner Y entitled to a salary of RO 150 per month.
vi.
Partner has earned a commission of RO 3800
vii.
Partner Z has paid an additional capital of RO 7000 and partner X has withdrawn the capital of RO 24000
viii.
profit in the ratio of 3:4:3 respectively.
There was a profit of RO 45000 which was transferred from profit and loss appropriation account and partners X, Y, Z shared that
Question:
Prepare partners' capital accounts and the partners' current account. Based on the above information answer the following 3'
questions. (Do not upload any documents in the moodle)
Transcribed Image Text:Case 2 X, Y and Z were the partners in a partnership firm. The following information were relating to the business at the end of the year 2019: i. Capital balance of partners X, Y, Z as on 1st January, 2019 was RO 120000, RO 80000 and RO 60000 respectively. i. Current account balance of partners as on 1st January, 2019: X: RO 45500 (Cr), Y: RO 32600 (Dr) Z: RO 22100 (Cr) ii. Drawings taken by the partners during the year was: X: RO 8800 Y: RO 7500 Z: RO 5400 iv. Interest on drawings was @ 7% and interest on capital was RO 5% V. Partner X entitled to a salary of RO 3200 per year and Partner Y entitled to a salary of RO 150 per month. vi. Partner has earned a commission of RO 3800 vii. Partner Z has paid an additional capital of RO 7000 and partner X has withdrawn the capital of RO 24000 viii. profit in the ratio of 3:4:3 respectively. There was a profit of RO 45000 which was transferred from profit and loss appropriation account and partners X, Y, Z shared that Question: Prepare partners' capital accounts and the partners' current account. Based on the above information answer the following 3' questions. (Do not upload any documents in the moodle)
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