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

Preparation of financial statements — practice question

L and M are partners in a partnership. The information below concerns the financial year. drawings: L $20000, M $30000 interest on drawings: L $1200, M $1800 interest on partner’s loan: L $8000 salary: M $20000 residual profit share: L $36000, M $18000 What was the profit for the year?

  • A$71000
  • B$77000
  • C$79000
  • D$121000

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