A-LevelAccountingPreparation of financial statements9706/12 · May/June 2024 · Q151 Mark

Both partners in a business have a credit balance on their current account. How does the inclusion of interest on drawings affect the financial statements of the partnership? current account balance shares of residual profit

Adecreases decreases

Bdecreases increases

Cincreases decreases

Dincreases increases

✓ Correct answer

B: decreases increases

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Preparation of financial statements and see which topics are most likely to come up next.

About this question

Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2024 Paper 1 Variant 2, question 15.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Accounting questions

Preparation of financial statementsFeb/Mar 20171m

A business provides the following information. Revenue $140000; opening inventory $22000; closing inventory $24500; …

Preparation of financial statementsFeb/Mar 20171m

The draft financial statements of a business show a profit for the year of $64000 before taking account of the follow…

Preparation of financial statementsFeb/Mar 20171m

The table shows transactions relating to a product during July. There was no opening inventory. Purchased: 50 units …

Accounting for non-current assetsFeb/Mar 20161m

A computer used for demonstration to customers was treated as capital expenditure. At the end of the year a customer …

Analysis and communication of accounting informationFeb/Mar 20161m

What is measured by the return on capital employed ratio?

Analysis and communication of accounting informationFeb/Mar 20161m

The following ratios have been calculated for two businesses, both with the same revenue of $100000. X Y gross margin…

← Browse all past-paper questions