Prepare journal entries to record the initial investment in the partnership for Nabiha Khan. A(1). Prepare...

   

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Prepare journal entries to record the initial investment in the partnership for Nabiha Khan. A(1). Prepare journal entries to record the initial investment in the partnership for Abdullah Khan. A(2). Record the withdrawals. A(3). Close the Income Summary and Drawing accounis. What will be the Net Capital Balance of Nabiha and Abdullah at the end of the period. Assets Total Assets Cash Non-Cash SAR 60,000 SAR 50,000 SAR 80,000 SAR 100,000 SAR 50,000 SAR 80,000 Abdullah SAR 40,000 Nabiha Samina -- January 2022 ABC SARA Company Accounting Consultancy Partnership 75,000 50,000 25,000 2,500 75,000 Revenue 50,000 Expenses Revenue Expenses Income Before Taxes 25,000 Income 5,000 Income Tax 10% 20,000 Income After Tax 2,000 18,000 20% Corporate Taxes Income After Taxes 22,500 Income Tax 10% Income after tax Illustration: Nabiha and Abdullah formed a SARA Management Consulting Partnership on January 1, 2021. The fair value of the net assets invested by each partner follows: SAR NABIHA KHAN 25,000 12,000 5,000 35,000 ABDULLAH KHAN 40,000 10,000 3,000 Cash Accounts Receivable Supplies Office Equipment Accounts Payable Mortgage Payable 15,000 12,000 20,000 6,000 During the year, Nabiha withdrew 15,000 and Abdullah withdrew 12,000. Net profit for 2021 was 50,000, which is to be allocated based on the original net capital investment. Prepare journal entries to record the initial investment in the partnership for Nabiha Khan. A(1). Prepare journal entries to record the initial investment in the partnership for Abdullah Khan. A(2). Record the withdrawals. A(3). Close the Income Summary and Drawing accounis. What will be the Net Capital Balance of Nabiha and Abdullah at the end of the period. Assets Total Assets Cash Non-Cash SAR 60,000 SAR 50,000 SAR 80,000 SAR 100,000 SAR 50,000 SAR 80,000 Abdullah SAR 40,000 Nabiha Samina -- January 2022 ABC SARA Company Accounting Consultancy Partnership 75,000 50,000 25,000 2,500 75,000 Revenue 50,000 Expenses Revenue Expenses Income Before Taxes 25,000 Income 5,000 Income Tax 10% 20,000 Income After Tax 2,000 18,000 20% Corporate Taxes Income After Taxes 22,500 Income Tax 10% Income after tax Illustration: Nabiha and Abdullah formed a SARA Management Consulting Partnership on January 1, 2021. The fair value of the net assets invested by each partner follows: SAR NABIHA KHAN 25,000 12,000 5,000 35,000 ABDULLAH KHAN 40,000 10,000 3,000 Cash Accounts Receivable Supplies Office Equipment Accounts Payable Mortgage Payable 15,000 12,000 20,000 6,000 During the year, Nabiha withdrew 15,000 and Abdullah withdrew 12,000. Net profit for 2021 was 50,000, which is to be allocated based on the original net capital investment.

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In the Books Of SARA A1 Management Consulting Partnershi... View the full answer