O-LevelAccountingAccounting procedures7707/12 · May/June 2017 · Q211 Mark

Ben and Joe decide to form a partnership. Ben is to invest $50000 in the business and Joe $10000. Ben wants the partnership agreement to reflect the differences in the amounts invested by the partners. What should Ben insist is included in the partnership agreement?

Ainterest on capital

Binterest on drawings

Cinterest on partner's loan

Dsalary for extra responsibilities

✓ Correct answer

A: interest on capital

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Topic: Accounting procedures, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source: O-Level Accounting, May/June 2017 Paper 1 Variant 2, question 21.

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