Question: I do not want to write it by hand, please .. I want words. Case - 1 Majid and Rashid are partners in a firm.

I do not want to write it by hand, please .. I want words.

Case - 1 Majid and Rashid are partners in a firm. Their capital accounts as on 15 April 2019 showed a balance of OMR 100,000 and OMR 200,000 respectively. On 1st July 2019 Majid introduced additional capital of OMR 40,000 and Rashid OMR 50,000. On 1st October Majid withdrew OMR 20,000 and 1st January 2020 Rashid withdrew OMR 10,000 from their capitals. Interest on capital is 6% and interest on drawings is 8% per annum the accounting period ends on March 31"' every year. a) Calculate interest on capital of both the partners during the year 2019-2020. (4 marks) b) What is the meaning of treatment of guarantee of minimum profit to a partner? (1 mark)

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