Accounting Multiple Choice Question – 10 September 2020

Lucy and Alex are in partnership, sharing profits and losses equally. Interest on capital account balances is to be allowed at 5%.

The capital account balances at the start of the year were: Lucy – £10,000; Alex – £20,000.

The profit for the year was £28,000.

How much was credited to Lucy’s current account at the end of the year?

Select ONE answer:

1. £13,250
2. £13,750
3. £14,000
4. £14,250

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

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

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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