O-LevelAccountingAccounting procedures7707/11 · May/June 2015 · Q221 Mark

Clear is a sole trader making annual profits of $24000. He decides to admit Deep as a partner. They agree that Clear would receive salary, and profits and losses would be shared equally. The forecast appropriation account for the partnership's first year of trading is: profit for the year 50000 salary Clear 10000 profit available for distribution 40000 By how much will Clear's total income increase?

A$1000

B$6000

C$16000

D$26.000

✓ Correct answer

B: $6000

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2015 Paper 1 Variant 1, question 22.

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