Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

Annie and Benny were partners in a partnership. They kept both capital and current accounts. On 1 January, Annie’s capital stood at $\$20\,000$. On 1 April, she introduced her private motor vehicle into the business at a valuation of $\$12\,000$. On 1 July, she withdrew goods with a cost price of $\$2,000$ for her own use. Interest on capital was worked out at $10\%$ per annum. What was Annie’s interest on capital for the year ended 31 December?

  • A$\$2\,800$
  • B$\$2\,900$
  • C$\$3\,000$
  • D$\$3\,200$

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