O-LevelAccountingPreparation of financial statements7707/12 · May/June 2015 · Q201 Mark
The financial year of Tony and Paul ends on 30 April. On 1 May 2015 Tony had a debit balance of $5000 on his current account. What does this mean?
AHe had invested $5000 in the business.
BHe had withdrawn $5000 from the business.
CHis drawings exceeded his total profit share.
DHis total profit share exceeded his drawings.
✓ Correct answer
C: His drawings exceeded his total profit share.
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