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

Preparation of financial statements — practice question

Lee and Mia are partners, and they share profits and losses in the ratio $4:3$ respectively. When their appropriation account for the year was prepared, an error occurred because interest on drawings was left out: Lee $\$90$ and Mia $\$50$. By what amount will Lee’s current account balance fall when this mistake is corrected?

  • A$\$10$
  • B$\$30$
  • C$\$150$
  • D$\$170$

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