Accounting 0452 · IGCSE · Partnerships

Partnerships — practice question

Josh and Karen run a partnership and divide profits and losses in the ratio $3:2$. Interest on capital is paid at $5\%$. Josh is to receive a salary of $10\,000$ per annum. After salary and interest on capital had been deducted, the residual profit was $20,000$. The capital account balances at the start of the year were: Josh $60\,000$ and Karen $40\,000$. How much in total was credited to Josh’s current account at the end of the year?

  • A$12\,000
  • B$15\,000
  • C$22\,000
  • D$25\,000

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