passwella.
Menu

WAEC Financial Accounting 2023 Question 49

Question 49

Partnership Accounts

Use the following information to answer questions 48 and 49.
Ant and Bee withdrew GH¢14,000 and GH¢10,000 respectively at 8% per annum from the partnership.
The total interest on drawings to be charged to profit and loss appropriation account is

  1. A.GH¢1,920.
  2. B.GH¢1,120.
  3. C.GH¢800.
  4. D.GH¢700.
Show the answer and explanation

Answer: A (GH¢1,920.)

Explanation

1,120 + 8% × 10,000 (800) = GH¢1,920.