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
|
|