ICAEW AF · Chapter 12 · Question 6 of 11
A partner's current account had a credit balance of £3,400 at the start of the year. Her share of profit for the year was £28,750 and her drawings were £30,500. What is the balance on her current account at the end of the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) £1,650 credit
Explanation
The current account is credited with the opening balance and the share of profit, and debited with drawings. Closing balance = £3,400 + £28,750 - £30,500 = £1,650 credit. A credit balance means the partnership owes this amount to the partner.
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