Accounting Multiple Choice Question – 8 October 2017

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which of the following correctly lists items to be shown in a partnership appropriation account?

Select ONE answer:

  1. drawings, interest on drawings, partnership salaries
  2. interest on drawings, interest on a partner’s loan, shares of residual loss
  3. interest on capital accounts, interest on drawings, partnership salaries
  4. interest on a partner’s loan, partnership salaries, shares of residual profit
  5. drawings, partnership salaries, shares of residual profit

Define and explain the differences between interest on capital accounts and interest on drawings:……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – The distribution of profits is calculated after the net profit or net loss in the Profit and loss account. The accounts appropriated in this account are: Interest on capital accounts; Partners’ salaries; Interest on drawings.

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