Subsection 5.2. Partnerships for Accounting, O Level - revisedeck

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5.2. Partnerships

A subsection of Accounting, 7707, through 5. Preparation of financial statements

Listing 10 of 31 questions

Harry and Jane are in partnership. The following information relates to Harry for the financial year. $ salary drawings share of profit The opening credit balance on Harry’s current account was $28 200. What was the closing balance on his current account?

7707_s20_qp_12

MCQ

2020

Paper 1, Variant 2

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Raj and Seema are in partnership sharing profits and losses 2 : 1. Raj withdrew $5000 during the year and was charged interest at 3%. Seema did not make any withdrawals during the year. The profit for the year was $30 000. How much was credited to Raj’s current account at the end of the year?

7707_s22_qp_11

MCQ

2022

Paper 1, Variant 1

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Carol and Denise are in partnership sharing profits and losses in the ratio 2 : 1. Denise’s current account balances were as follows. at 1 May 2021 $2000 debit at 1 May 2022 $7000 credit She had made no drawings during the year. What was the total profit made by the partnership in the year ended 30 April 2022?

7707_s22_qp_12

MCQ

2022

Paper 1, Variant 2

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X and Y are in partnership with capital of $50 000 and $30 000 respectively. The partnership agreement provides that profits are to be shared in proportion to capital invested and each partner is entitled to 10% interest on capital. Profit for the year was $37 000. What was the total amount credited to Y’s current account at the end of the year?

7707_s23_qp_11

MCQ

2023

Paper 1, Variant 1

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Abi and Erni are in partnership. Erni is entitled to an annual partnership salary of $3000. They share residual profits and losses equally. The profit for the year ended 31 August 2022 was $12 600. On 1 September 2021, the partners’ current account balances were as follows. $ Abi 2500 credit Erni 1400 debit What was the credit balance on Erni’s current account on 1 September 2022?

7707_s23_qp_12

MCQ

2023

Paper 1, Variant 2

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John and Mark are in partnership. Profits and losses are shared in the ratio 3 : 2. John is entitled to an annual salary of $12 000. The profit for the year ended 31 August 2020 was $52 000. How much would be credited to the partners’ current accounts on 31 August 2020?

7707_w20_qp_13

MCQ

2020

Paper 1, Variant 3

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A partnership maintains both current and capital accounts for each partner. An inexperienced book-keeper prepared the following account which contains errors. Owen capital account $ $ balance c / d 135 000 balance b / d 100 000 loan made to partnership 30 000 interest on capital 5 000 135 000 135 000 What should appear as the closing balance on Owen’s capital account?

7707_w20_qp_13

MCQ

2020

Paper 1, Variant 3

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Josh and Karen are in a partnership sharing profits and losses 3 : 2. Interest on capital is allowed at 5%. Salary payable to Josh is $10 000 per annum. The residual profit after deduction of salary and interest on capital was $20 000. The capital account balances at the start of the year were: Josh $60 000 and Karen $40 000. What was the total amount credited to Josh’s current account at the end of the year?

7707_w23_qp_12

MCQ

2023

Paper 1, Variant 2

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What are the features of a debenture?

7707_w23_qp_13

MCQ

2023

Paper 1, Variant 3

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John and Mark are in partnership. Profits and losses are shared in the ratio 3:2. John is entitled to an annual salary of $12000. The profit for the year ended 31 August 2023 was $52000. How much would be credited to the partners’ current accounts on 31 August 2023?

7707_w24_qp_13

MCQ

2024

Paper 1, Variant 3

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Questions Discovered

31