Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

Annie and Bernie have been partners for several years, dividing profits and losses in the ratio $2:1$. From 1 January 2020, they agreed to add interest on drawings. For the year ending 31 December 2020, the annual interest on drawings was $1300$ for Annie and $800$ for Bernie. What effect did this have on Annie’s current account balance at 31 December 2020?

  • Adecrease of $100$
  • Bdecrease of $500$
  • Cincrease of $100$
  • Dincrease of $500$

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