Humaid, Omar and Suhail are in partnership and during the year ended 31 December, 2018...
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Accounting
Humaid, Omar and Suhail are in partnership and during the year ended 31 December, 2018 earned profitof OMR 83,000Humaid and Omar are entitled to 5% p.a. interest on their capitals of OMR 16,000 andOMR 10,000 respectively while Suhail, who has no capital in the firm, is entitled to a salary of OMR 12,000 per annum.
Suhail is also entitled to a commission of 5% profitsIt is further agreed that out of the remaining profit 20% shall be donatedto an approved charity and balance profit will be shared equally by the partners.
Required
1. Prepare Profit and Loss Appropriation Account for the year ended 31st March 2018.
2. Discuss the relevant article in the Commercial Company Law of Oman which deals with the issue of giving donations.
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