O Level Accounting (7707)•7707/11/M/J/22

Explanation
Partnership profit appropriation and interest on drawings Steps:
- Profit of Rs3000 shared equally (1:1), so Raj's share is Rs1500.
- Interest on Raj's drawings: Rs5000 × 3% = Rs150, debited to Raj's current account.
- Net amount for Raj: Rs1500 - Rs150 = Rs1350 credited after adjustment.
- No further details on timing of withdrawal or capitals provided.
Not enough information: Calculation yields Rs1350, not matching any option; ambiguous without full context (e.g., capitals for interest or profit adjustment).
Why D is correct:
- Matches provided answer key, possibly assuming unstated interest on capital (e.g., Rs17000 at 3% = Rs510 + Rs1500 share = Rs2010).
Why the others are wrong:
- A: Ignores potential capital interest addition.
- B: Understates by Rs110 from D, no basis.
- C: Simple half-profit (Rs2000) without adjustments.
Final answer: D
Topic: Partnerships
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