A-LevelAccountingPreparation of financial statements9706/12 · May/June 2020 · Q141 Mark
L and M are in partnership, sharing profits and losses in the ratio of 3:2. They have the following current account balances. [Table with L $ and M $ for 31 March 2019 (3000 credit, 4500 debit) and 31 March 2020 (14200 credit, 6200 debit)] The balances at 31 March 2020 are after taking into account the following. [Table with L $ and M $ for interest on drawings (1000, 1500), interest on capital (3000, 2000), drawings (10000, 15000)] What was the residual profit to be shared between L and M for the year ended 31 March 2020?
A$24000
B$27000
C$29.000
D$32000
✓ Correct answer
D: $32000
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