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What Is the Net Movement in the Current Account of Thomas

Question 4

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What is the net movement in the current account of Thomas in respect of interest on drawings and interest on capital?
Thomas and Anna are in a partnership sharing profits and losses equally. The partnership agreement states that interest on drawings is to be charged at a rate of 10% and interest on capital credited at the rate of 6%. The following information is available about the partners' transactions. The partnership has a year end of 31 December 20X1
What is the net movement in the current account of Thomas in respect of interest on drawings and interest on capital? Thomas and Anna are in a partnership sharing profits and losses equally. The partnership agreement states that interest on drawings is to be charged at a rate of 10% and interest on capital credited at the rate of 6%. The following information is available about the partners' transactions. The partnership has a year end of 31 December 20X1    A)  Debit of £7,267 B)  Credit of £7,267 C)  Debit of £11,933 D)  Credit of £11,933


A) Debit of £7,267
B) Credit of £7,267
C) Debit of £11,933
D) Credit of £11,933

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