Accounting Multiple Choice Question – 12 January 2023

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

Accounting
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Hilary and Lee commenced in partnership on 1 January 2015.

There was no partnership agreement concerning the division of interest on the loan or of profits.

  • capital contributions: Hilary £5,000 & Lee £600
  • loan to partnership: Hilary £0 and Lee £1,000

At the year end, 31 December 2015, profit for the year before the loan interest was £8,850.

What would be Hilary’s share of the profit?

Select ONE answer:

  1. £4,400
  2. £4,425
  3. £4,800
  4. £4,827

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 1

  1. Correct – Partnership Act 1890 £8,850 – (£1,000 * 05%) / 2 = = > £4,400
  2. Not correct
  3. Not correct
  4. Not correct

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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