Accounting 0452 · IGCSE · Partnerships

Partnerships — practice question

Pari and Ira operate as partners, with profits and losses divided equally. Interest is credited on the capital account balances at $6\%$ each year. Pari receives a salary of $5000 a year. At the beginning of the year, the capital account balances stood at $60000 for Pari and $40000 for Ira. The profit made during the year was $27500. What amount of the remaining profit was posted to Pari’s current account at the year end?

  • A$8250
  • B$10750
  • C$11250
  • D$13250

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