O-LevelAccountingPreparation of financial statements7707/13 · Oct/Nov 2020 · Q201 Mark

John and Mark are in partnership. Profits and losses are shared in the ratio 3:2. John is entitled to an annual salary of $12000. The profit for the year ended 31 August 2020 was $52000. How much would be credited to the partners' current accounts on 31 August 2020?

AJohn's current account $24000, Mark's current account $16000

BJohn's current account $26000, Mark's current account $26000

CJohn's current account $31200, Mark's current account $20 800

DJohn's current account $36 000, Mark's current account $16000

✓ Correct answer

D: John's current account $36 000, Mark's current account $16000

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Topic: Preparation of financial statements, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2020 Paper 1 Variant 3, question 20.

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John and Mark are in partnership. Profits and losses are shared in the ratio 3:2. John is entitled to an annual salary of $12000. The profit for the year ended 31 August 2020 was $52000. How much would be credited to the partners' current accounts on 31 August 2020?

✓ Correct answer

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