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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Partnerships
Hello John, I’ve come across this question and it’s a little confusing.
If Mary and George share profits in the ratio 3:2 and George is entitled to a salary of $10,000, Interest on capital is paid at a rate of 6%. Calculate Mary’s profit.
Is it correct to say George’s salary is paid out of his share of Profit and therefore would not affect Mary’s profit? Credit entry in his account before profit is shared?
Also, is the interest capital charged for Mary or both partners before profits are distributed?
I don’t know where you found this question, but partnership accounting was removed from the syllabus for Paper FA a very long time ago!!
This question can not be asked in Paper FA these days.