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Workings:
Interest on Capital: Khary – $200,000 x 12% = $24,000 Kwame – $160,000 x 12% = $19,200 Kofi – $100,000 x 12% = $12,000 Residual Profit: $741,000 – (160,000+100,000+100,000) – (24,000+19,200+12,000) = $325,800. Share of Residual Profit: Khary – $325,800 x 60% = $195,480 Kwame – $325,800 x 20% = $65,160 Kofi – $325,800 x 20% = $65,160
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No. 2(a): Completed table showing which characteristics are applicable to each type of business structure:  No. 2(b) (i): Below are the necessary double entries related to the preparation of the Capital Adjustment Account for the partnership before the admittance of Janet:
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AuthorThe author holds a Bsc (Hons) Degree in Applied Accounting from Oxford Brookes University, England and enjoys a successful career as an Accounting Supervisor and a private tutor. Archives
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