Paper 1 October/November 2008 Accounting (9706/01) A Level
Vikram is a partner in a business. Partners do not receive salaries or interest on capital, but they are charged 5% interest on the balance of their drawings account.
Vikram made drawings of $40 000 during the year and his share of profits was $47 500.
His current account showed a credit balance of $4500 after the relevant entries were made at the end of the financial year.
What was…