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

Preparation of financial statements — practice question

X, Y and Z form a partnership and share profits and losses in the ratio $5:2:3$. Y receives a salary of $18000 per annum. The partners are paid interest at $6\%$ per annum on the balances in their capital accounts at the start of the year. At the start of the year, the capital account balances were: X: $30000 Y: $22000 Z: $20000 The profit for the year, before Y’s salary and the partners’ interest on capital are deducted, is $140000. What is Y’s share of the total profits?

  • A$23536
  • B$28000
  • C$42856
  • D$46000

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