Homework 3:

Rad, Kia, Mad and Ala are co-partners in the Ram Company. The partnership agreement named LEOE provides for:

1-  salary allowances of $22,000 to Ala , $17,500 to Kia and 19,000 for Mad.

2-  Capital balances on January were Ala $80,000, Mad $90,000 ,Kia 84,000 and 110,000 $ Rad

In 2023, partnership net income is $250,000.

3-  Driving for the year were 18000 for Ala , 24,000 for Mad ,30,000 for Kia and 15,00 for Rad .

4-  The partners share net income and net loss equally.

•    Required:

1-  Prepare the division of net partners’ capital.

2-  Prepare closing entries.