Anwar is a sole trader making annual profits of $24000. He decides to admit Dilip as a partner. They agree that Anwar would receive a salary, and profits and losses would be shared equally.
The forecast appropriation account for the partnership's first year of trading is:
[Figure showing table with profit for the year, salary Anwar, profit available for distribution]
By how much will Anwar's total income increase?

Q: What topic does this question test?

This question tests Accounting procedures in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2021 examination, Paper 1 Variant 2 (7707_w21_qp_12.pdf).

Question

Anwar is a sole trader making annual profits of $24000. He decides to admit Dilip as a partner. They agree that Anwar would receive a salary, and profits and losses would be shared equally.
The forecast appropriation account for the partnership's first year of trading is:
[Figure showing table with profit for the year, salary Anwar, profit available for distribution]
By how much will Anwar's total income increase?

Oracle Prep · Accepted Answer

The correct answer is B: $6000.

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