Annie and Bernie have been in partnership for some years, sharing profits and losses in the ratio 2 : 1.
On 1 January 2020, they decided to introduce interest on drawings. The annual interest on drawings for the year ended 31 December 2020 was $1300 for Annie and $800 for Bernie.
Which effect did this change have on the balance on Annie’s current account at 31 December 2020?
1 )
decrease of $100
2 )
decrease of $500
increase of $100
4 )
increase of $500
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