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.        ii.           Current account balance of partners as on 1st January, 2019: X: RO 45500 (Cr),                                                                                                                       Y: RO 32600 (Dr)                                                                                                                       Z: RO 22100 (Cr)         iii.            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            Partner Z has paid an additional capital of RO 7000 and partner X has withdrawn the capital of RO 24000    viii.            There was a profit of RO 45000 which was transferred from profit and loss appropriation account and partners X, Y, Z shared that profit in the ratio of 3 : 4 : 3 respectively. The closing balances of partners' current account will be: a. X RO 58748 (Dr), Y RO 16852 (Cr), Z RO 36620 (Dr) b. X RO 58784 (Dr), Y RO 16825 (Cr), Z RO 36622 (Dr) c. X RO 58984 (Dr), Y RO 16925 (Dr), Z RO 36626 (Dr) d. X RO 59784 (Dr), Y RO 17825 (Cr), Z RO 37622 (Dr)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

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.

       ii.           Current account balance of partners as on 1st January, 2019: X: RO 45500 (Cr),

                                                                                                                      Y: RO 32600 (Dr)

                                                                                                                      Z: RO 22100 (Cr)

 

      iii.            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.            There was a profit of RO 45000 which was transferred from profit and loss appropriation account and partners X, Y, Z shared that profit in the ratio of 3 : 4 : 3 respectively.

The closing balances of partners' current account will be:
a.
X RO 58748 (Dr), Y RO 16852 (Cr), Z RO 36620 (Dr)
b.
X RO 58784 (Dr), Y RO 16825 (Cr), Z RO 36622 (Dr)
c.
X RO 58984 (Dr), Y RO 16925 (Dr), Z RO 36626 (Dr)
d.
X RO 59784 (Dr), Y RO 17825 (Cr), Z RO 37622 (Dr)

 

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Partnership Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education