Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

Bella and Charlie are partners, and they divide profits and losses in the ratio $3\!:\!2$. Their capital contributions were made in that same ratio. For the financial year, the partners gave the following details. Interest on drawings charged: Bella $850$, Charlie $550$ Salary paid: Bella $16\,900$, Charlie $-$ Share of profit: Bella $6000$, Charlie $4000$ The profit earned during the year was $28\,000$. How much was Bella’s interest on capital?

  • A$660$
  • B$1100$
  • C$1500$
  • D$2500$

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