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Question 2 Ahmed, Mohammed, and Mahmood invested to establish a company for imports Hardware Tools. They...

Question 2

Ahmed, Mohammed, and Mahmood invested to establish a company for imports Hardware Tools. They decided to share capital and distributed the profits in equally. The total capital SR 270,000. Ahmed, Mohammed paid their share in partnership SR 180,000, and Ahmed paid SR 60,000 his full share.

The journal entries of the initial investments under Bonus Method:

A.

Questions

Dr

Cr

C

Capital A/c        

        Ahmed capital                  

       Mohammed Capital    

       Mahmood Capital          

240,000  

80,000

80,000

80,000

B.

Questions

Dr

Cr

A

Investment A/c        

        Ahmed capital                  

      Mohammed Capital    

       Mahmood Capital         

240,000  

80,000

80,000

80,000

C.

Questions

Dr

Cr

D

bank A/c        

        Ahmed capital                 

       Mohammed Capital    

       Mahmood Capital         

240,000  

90,000

90,000

60,000

D.

Questions

Dr

Cr

B

Bank A/c        

        Ahmed capital                  

      Mohammed Capital    

       Mahmood Capital         

240,000  

80,000

80,000

80,000

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