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

Preparation of financial statements — practice question

Smith and Jones are in partnership and divide profits and losses in the ratio $3:2$ respectively. The profit for the year was $152000$. Smith was charged interest on drawings of $1650$, and Jones received a partnership salary of $40000$. What was Smith’s share of the residual profit?

  • A$66210
  • B$68190
  • C$114210
  • D$116190

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