O-LevelAccountingPreparation of financial statements7707/11 · May/June 2025 · Q231 Mark
Which statements are correct in relation to the financial statements of a partnership? 1 Interest on partners' capital is shown as an expense in the income statement. 2 Interest on partners' drawings is added to the profit for the year in the appropriation account. 3 Partners' current account balances are shown in the statement of financial position. 4 Partners' salaries are shown as an expense in the income statement.
A1 and 2
B2 and 3
C2 and 4
D3 and 4
✓ Correct answer
B: 2 and 3
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