Accounting 0452 · IGCSE · Partnerships

Partnerships — practice question

John and Mark operate as partners. Their profits and losses are divided in the ratio $3:2$. John receives an annual salary of $\$12\,000$. The profit for the year ended 31 August 2020 was $\$52\,000$. What sum would be entered on the credit side of the partners’ current accounts on 31 August 2020?

  • AJohn’s current account $\$24\,000$, Mark’s current account $\$16\,000$
  • BJohn’s current account $\$26\,000$, Mark’s current account $\$26\,000$
  • CJohn’s current account $\$31\,200$, Mark’s current account $\$20\,800$
  • DJohn’s current account $\$36\,000$, Mark’s current account $\$16\,000$

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