Q4- (10 Marks: b1:10): Ali and Ibrahim have capital balances on January 1 of BD40,000 and 8D60,000, respectively. The pa

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Q4 10 Marks B1 10 Ali And Ibrahim Have Capital Balances On January 1 Of Bd40 000 And 8d60 000 Respectively The Pa 1 (33.73 KiB) Viewed 35 times

Q4- (10 Marks: b1:10): Ali and Ibrahim have capital balances on January 1 of BD40,000 and 8D60,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of BD16,000 for Ali and BD20,000 for Ibrahim, (2) interest at 10% on beginning capital balances, and (3) remaining Income or loss to be shared 40% by Ali and 60% by Ibrahim, Required: Based on the above data use your basic skills to; (a) Prepare a schedule showing the distribution of net income, assuming net income is (1) BD56,000 and (2) BD37,000. (7M) (b) Prepare Journal entries of net income in each of the situations above. (3M)