Question 2. (CLO 3, 6 Marks) Maryam and Munir have a partnership agreement with

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Question 2. (CLO 3, 6 Marks) Maryam and Munir have a partnership agreement with the following conditions: 1. Maryam receives AED 131,508 annual salary allowance and Munir receives an allowance of AED 87,672 Each partner is allowed an annual interest allowance of 10% on their beginning capital balance. 2. 3. The beginning balances of Maryam and Munir are AED 109,520 and AED 36,530 4. 5. respectively Any remaining balance of income or loss is allocated equally. The remaining balance after the allocation of salary allowances and interest allowances is AED 21,925. The name of the partnership is Marnir Partnership Required: During 2017, Maryam withdrew AED 73,060 cash from the partnership and Munir withdrew AED 43,836. Net income for the year is AED 255,710. Prepare the Statement of Partners Equity. (CLO 3, 6 marks) Statement of Partners' Equity For the Year Ended December 31, 2011 Maryam Munir Total Beginning capital balances Investments by owners Net income Salary allowances Interest allowances Balance allocated Total net income Less partners' withdrawals Ending capital balances

Explanation / Answer

Solution:

Statement of Partners' Equity Particulars Maryam Munir Total Beginning capital balances 109520.00 36530.00 146050.00 Investment by owners 0.00 0.00 0.00 Net Income: Salary Allowance 131508.00 87672.00 Interest Allowance 10952.00 3653.00 Balance Allocated 10962.50 10962.50 Total Net Income 153422.50 102287.50 255710.00 Less Partners' Withdrawals 73060.00 43836.00 116896.00 Ending capital balances 189882.50 94981.50 284864.00

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