O-LevelAccountingAccounting procedures7707/13 · Oct/Nov 2023 · Q241 Mark

Pari and Ira are in a partnership, sharing profits and losses equally. Interest on the capital account balances is allowed at 6% per annum. Pari is entitled to a salary of $5000 per annum. The capital account balances at the start of the year were $60000 for Pari and $40000 for Ira. The profit for the year was $27 500. How much residual profit was credited to Pari's current account at the end of the year?

A$8250

B$10750

C$11250

D$13250

✓ Correct answer

A: $8250

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, Oct/Nov 2023 Paper 1 Variant 3, question 24.

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