Accounting 9706 · AS & A Level · Reconciliation and verification

Reconciliation and verification — practice question

The statement of financial position contained the balances at 31 December 2019 for partners L and M, with both capital accounts and current accounts included. Net assets on 1 January 2019 were $14\,000$. Property was revalued to a higher amount by $12\,000$ in the year ended 31 December 2019. No drawings were taken during the year. What profit was earned for the year ended 31 December 2019?

  • A$2\,500$
  • B$5\,500$
  • C$14\,500$
  • D$17\,500$

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