Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

L and M are in partnership, with profits and losses divided in the ratio of $3:2$. The balances on their current accounts are given below. At 31 March 2023: L $3000 credit, M $4500 debit At 31 March 2024: L $14200 credit, M $6200 debit The figures at 31 March 2024 already reflect the following items: Interest on drawings: L $1000, M $1500 Interest on capital: L $3000, M $2000 Drawings: L $10000, M $15000 What was the residual profit available for division between L and M for the year ended 31 March 2024?

  • A$24000
  • B$27000
  • C$29000
  • D$32000

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