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

Preparation of financial statements — practice question

X and Y are partners, and they divide profits and losses in the ratio 3 : 2 respectively. Interest on drawings is 5%. In the year ended 31 December, each of X and Y withdrew an amount equal to their own partner’s salary. Interest on drawings charged to X was $550, and to Y was $450. The profit for the year was $94 000, and loan interest paid to X was $3000. What was Y’s share of the residual profit?

  • A$28 800
  • B$29 200
  • C$30 000
  • D$38 000

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