L and M are in partnership, sharing profits and losses in proportion to their capital invested. The following information is available:
capital: L 68000
M 102000
profit for the year before appropriation 28 900
drawings: L 8000
M 12000
No interest is charged on drawings up to $10000 for each partner.
Interest at a rate of 5% is charged on any drawings in excess of $10000.
What was L's share of residual profit?

Q: What topic does this question test?

This question tests Partnership Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2020 examination, Paper 1 Variant 2 (9706_m20_qp_12.pdf).

Question

L and M are in partnership, sharing profits and losses in proportion to their capital invested. The following information is available:
capital:	L	68000
	M	102000
profit for the year before appropriation	28 900
drawings:	L	8000
	M	12000
No interest is charged on drawings up to $10000 for each partner.
Interest at a rate of 5% is charged on any drawings in excess of $10000.
What was L's share of residual profit?

Oracle Prep · Accepted Answer

The correct answer is B: $11600.

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