Accounting 0452 · IGCSE · Partnerships

Partnerships — practice question

Anwar runs a sole trader business and earns annual profits of $24000. He chooses to take Dilip in as a partner. They agree that Anwar will be paid a salary, and that profits and losses will be split equally. The projected appropriation account for the partnership’s first year of trading is: profit for the year $50000 salary Anwar $10000 profit available for distribution $40000 By what amount will Anwar’s total income rise?

  • A$1000
  • B$6000
  • C$16000
  • D$26000

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