Paper 2 · November 2024 · Partnership current accounts and statement of financial position
Hove's current account opened with a credit balance of $5 000 on 1 January 2020. During the year, interest on capital of $8 000 and interest on current account of $250 were credited to him, his share of profit was $10 300 and the appropriation account credited him with a salary of $10 000. He was charged interest on drawings of $180, took drawings of $3 600, and had already received $4 000 of his salary in cash during the year. Calculate his current account closing balance at 31 December 2020.
Model answer
$25 770
Also accepted: 25770, 25 770
Explanation
Credits: 5 000+8 000+250+10 000+10 300=33 550. Debits: 180+3 600+4 000=7 780. Closing balance = 33 550-7 780 = $25 770 Cr.
Derived from ZIMSEC Principles of Accounting 4051/2 Paper 2, November 2024, Q1