Mustafa and Abdel Rahman agreed to establish a Debtors (ALWujooh) company, and agreed to buy goods and sell them for cash, and during the year Mustafa bought goods worth 300,000 dinars, and Abdel Rahman bought goods worth 450,000 dinars, and sales reached 900,000 dinars. And the ending Inventory was estimated at a current value of 90,000 dinars, and selling expenses amounted to 15,000 dinars. The company paid the debts of all suppliers, and each partner withdrew 40% of his profits for his personal expenses.

Required: -
1) Determine the profit share of each partner.
2) The partner’s current account for each of the partners in the company at the end of the year.
3) The cash balance at the end of the year.
4) Prepare the balance sheet on 31/12/ 00?

Answer rating: 100% (QA)

1 The profit share will be based on the capital contributed by each partner As the contribution is i... View the full answer