Would you please help with this mutiple choice question

[Syndy]

Would you please show me the correct calculation .

Thank you.

 

[Fidget]

Which one do you think it is, and why? You're not going to learn if somebody just tells you the answer.

 

[Syndy]

This was my calcualtion but the answer is wrong

Profit of the year 100000
Add interest on drawings 6000 + 4000
= 110000
Shared profit = 55000

In the current account
55000 less interest on drawings = 51000
The correct answer is C
55100

 

[Fidget]

You have to record the full amount first, which, based on an equal sharing would be 55000 each.

 

[Syndy]

I have recorded it then I deductedthe interest on drawing still I got a wrong answer.
What do you think my mistake is?

 

[Fidget]

You've taken it further than the requirement of the question. It's not asking you to account for the interest - it's just asking you what amount was credited. The interest charge would be a transaction of its own, and be a debit to the account.

 

[Syndy]

That's great. Thank you very much for your help.