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MCQ O-Level Principle of Account for Nov 03

D

dasani

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John amd Paul are partners and share profit equally . Profit for the tear before interest on capital is $50000. Interest on capital is as follows.

John $7000
Paul $3000

What will be the total amount credited to Jonh's Current account for the year?

Help me in this MCQ.
 
C

c0ol_fahad

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7000 will obviously come on credit side plus if u see carefully 3000 goes in paul's a/c so the remaining profit would be 40,000 (50,000-10,000) so 40,000 will be divided by two (because it says they will share equal profit) so that means 20,000 as a share of profit and 7,000 as interest on capital the total amount would be 27,000 ur answer
hope this helped u
fahad
 
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