Day: October 9, 2023

Information about the final accounts of the Alex Partnership is given below:

• net profit before interest – £160,000
• interest on bank loan – £14,000
• interest credited to capital accounts – £15,000
• Drawings – £70,000
• partnership salaries – £24,000

What is the remaining balance of profits to be appropriated amongst the partners?

Select ONE answer:

1. £66,000
2. £107,000
3. £121,000
4. £137,000

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 == > £160k – £14k – £15k – £24k
3. Not correct
4. Not correct

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