Accounting 0452 · IGCSE · Partnerships

Partnerships — practice question

Pari and Ira are partners, with profits and losses divided equally. Interest on the balances in the capital account is payable at 6% per annum. Pari is to receive a salary of $5000 per annum. At the beginning of the year, the capital account balances stood at $60000 for Pari and $40000 for Ira. The profit for the year was $27500. What amount of residual profit was credited to Pari’s current account at the end of the year?

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

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