Cooperative Accounting

Ms. Amna and Ms. Samiya started business on January 1, 2018 with capitals of OMR 90,000 and OMR 70,000 respectively.  Ms. Amna introduced OMR 10,000 as additional capital on April 1, 2018. They decided to share the profit and losses in the ratio of 2:1. They close their books of account on December 31 every year.

Required

How much interest on capital will be paid to Ms. Amna and Ms. Samiya, when the martnership deed provides 10% as interest on capital and the firm gets a profit of OMR 30,000?

Answer rating: 100% (QA)

No interest w ill be paid Interest on capital is the one ... View the full answer