Page 44 - Demo

%u062c%u0645%u064a%u0639 %u0627%u0644%u062d%u0642%u0648%u0642 %u0645%u062d%u0641%u0648%u0638%u0629 %u0640 %u0627%u0625%u0644%u0639%u062a%u062f%u0627%u0621 %u0639%u0644%u0649 %u062d%u0642 %u0627%u0644%u0645%u0624%u0644%u0641 44 %u0628%u0627%u0644%u0646%u0633%u062e %u0623%u0648 %u0627%u0644%u0637%u0628%u0627%u0639%u0629 %u064a%u0639%u0631%u0636 %u0641%u0627%u0639%u0644%u0647 %u0644%u0644%u0645%u0633%u0627%u0626%u0644%u0629 %u0627%u0644%u0642%u0627%u0646%u0648%u0646%u064a%u0629This will only affect the direct distribution entry, as will be shown in the following example:Example (5)A, B, & C started their business on 1/1/2019 with total capital balance $300,000 divided between partners equally. By the end of the year, the company realized Net Income of $33,000.. and the agreement among the partners stated the following: 1- To allow an Interest of 10% on the capital balances.2- To allow an annual salary of $20,000 to Partner %u201cA%u201d.3- To allow a bonus of 10% from profit after deducting bonus for partner %u201cC%u201d.4- To allocate Profit or Loss at a ratio of 4 : 3 : 3 respectively.Required: Prepare the Journal Entries to record the distribution of Profit among the partners. Capital is 100,000 to A, 100,000 to B & 100,000 to C.1- Distributable income = 33,0002- Prepare distribution factors:1) Interest on capital 2) SalariesA = 100,000 %u00d7 10% = 10,000B = 100,000 %u00d7 10% = 10,000C = 100,000 %u00d7 10% = 10,00030,000Annual salary for partner (A) = 20,0003) Bonus (C) 4) Remainder33,000 %u00d7 10 = 3,000 110= 33,000 - 30,000 - 20,000 - 3,000 = (-) 20,000A = - 20,000 %u00d74 = - 8,000 10B = - 20,000 %u00d73 = - 6,000 10C = - 20,0003 = - 6,000 10- 20,0003- Recording the distribution of the net profita) Closing Income Summary in P & L Distribution Account:Income Summary 33,000P & L Distribution 33,000424- The remainder becomes a loss