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

Preparation of financial statements — practice question

Yasmin and Zara are partners, and they divide profits and losses in the ratio $3:2$ respectively, after Zara has been paid a partnership salary of $8000 per annum. In the partnership's first year of trading, Yasmin withdrew $11\,500 in drawings, and the business earned a profit of $7000 before appropriation. What was the closing debit balance on Yasmin's current account?

  • A$7300
  • B$10\,900
  • C$11\,900
  • D$12\,100

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