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

Preparation of financial statements — practice question

L and M are in partnership. The following information for the partnership concerns 2020: Profit before appropriation $88\,000$ Interest on drawings: L $1\,000$, M $1\,000$ Interest on capital: L $3\,000$, M $1\,000$ The profits are divided in the same proportion as the balances on the partners’ capital accounts. How much of the residual profit goes to L?

  • A$41\,000$
  • B$43\,000$
  • C$61\,500$
  • D$64\,500$

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