A-LevelAccountingPreparation of financial statements9706/12 · May/June 2010 · Q151 Mark
X, Y and Z are in partnership sharing profits and losses in the ratio 5:2:3. Y is entitled to a salary of $18 000 per annum. Partners receive interest at 6% per annum on their capital account balances at the start of the year. At the beginning of the year, capital account balances were: X $30 000 Y $22 000 Z $20 000 The net profit before salary and interest for the year is $140 000. What is Y's share of the total profits?
A$23 536
B$28 000
C$42 856
D$46 000
✓ Correct answer
C: $42 856
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