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Q.2. A, B and Care partners started a partnership firm M/s. Amla LLC with capitals of OMR 88,000; OMR 52,800 and OMR 44,000 respectively on 1.1.2019. Partnership Deed of the firm contains various clauses that the Partner A has to get a salary @ OMR 660 per month for his services rendered to the firm. Partners B and C gets 10% commission each on the net profit and the Bonus to be paid to Partners A and C @ OMR 550 each. Further the document gives that Interest on Capital paid by the firm @ 5.5 % p.a. to the partners and the partners have to pay Interest on Drawings @ 2.5 %p.a to the firm., Profit and Losses to be shared Up to OMR 9,900 in the ratio of 4:3:2 and Above OMR 9,900 equally. The Drawings of the partners are - A OMR 5,280; B OMR 3,520 and COMR 2,200 and the net profit of the firm for the year ended 31st December 2019 amounts to OMR 61,050. a. Prepare Profit and Loss Appropriation Account and (2.5 Marks) b. Capital Accounts of the partners assuming- a. Capitals are fixed and b. Capitals are fluctuating. (2.5 Marks) Razan and Rawan were partners sharing the profits and losses of their partnership firm "Maa and Me" in the ratio of 5:3. As the due were struggling with managing the ever increasing financial needs of their business and hence they decided to admit Rehab in their partnership firm. Rihab, a rich lady was drawn in to induce funds in the cash strapped business. She agreed to participate in the struggling venture demanding a 5/9 share in profits, which was agreed by Razan and Rawan. You are requested to explain in detail as to how the reconstitution of the firm would take place considering each and every necessary adjustment including calculation whrever applicable

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