OxfordAQA A-Level Accounting: Partnership accounts (9615) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover section 3.2.5, Partnership accounts, of the OxfordAQA International AS and A-level Accounting (9615) specification, Version 1.2, for International AS exams May/June 2025 onwards and International A-level exams May/June 2026 onwards. The section is International A-level only, and the specification lists it among the content assessed in Paper 3: Financial Accounting. Figures are in dollars; every partner is invented.

Learn the methods with the study guide and the revision notes. See also the course hub, the printable checklist and the free diagnostics.

Questions

1. State two differences between fixed capital accounts and fluctuating capital accounts. [2]

2. Lorimer (capital 60,000) and Mabbott (capital 15,000) have no partnership agreement. On 1 July 2025 Mabbott lent the firm 10,000 beyond his capital. Profit before any interest for the year ended 31 December 2025 was 30,250. Lorimer claims interest on capital at 8% a year; Mabbott claims a salary of 7,000. Calculate the profit for the year and the share credited to each partner. [4]

3. The year ends on 31 December and interest on drawings is charged at 8% a year. During 2025 Nesbitt drew 4,500 on 1 February, 3,600 on 1 June and 1,200 on 1 November. Calculate the interest on Nesbitt’s drawings. [3]

4. Ottley’s capital was 50,000 on 1 April 2025. With the other partners’ consent she withdrew 8,000 of capital on 1 January 2026. Interest on capital is 5% a year and the year ends on 31 March 2026. Calculate her interest on capital. [2]

5. Sallow, Pengelly and Haverstock made a profit for the year ended 31 October 2025 of 18,600. Their agreement provides interest on capital at 6% a year (capitals: Sallow 40,000, Pengelly 30,000, Haverstock 20,000); salaries of 9,000 each to Pengelly and Haverstock; and residual profits or losses shared 2 : 2 : 1. Interest on drawings was Sallow 300, Pengelly 240 and Haverstock 160. Prepare the appropriation account. [6]

6. Tregunna and Tunstall keep fixed capital accounts of 60,000 and 30,000. For the year ended 31 December 2025:

	Tregunna	Tunstall
Current account, 1 January 2025	2,200 credit	1,350 credit
Interest on capital	3,000	1,500
Salary	–	16,000
Share of residual profit	24,600	16,400
Loan interest due, not yet paid	–	600
Interest on drawings	610	470
Drawings	27,800	35,900

(a) Prepare the partners’ current accounts in columnar form. [5] (b) Draft the equity section at 31 December 2025 for the statement of financial position. [2]

7. Vane and Wyatt share profits equally, with capitals of 32,000 and 28,000. Wenlock is admitted on 1 January 2026 and pays 25,000 into the bank as capital. Before admission, premises are revalued upward by 14,000, equipment is reduced by 3,200, and an unrecorded other payable of 400 is brought into the books. Goodwill, valued at 24,000, is not to be kept. Afterwards Vane, Wyatt and Wenlock share 2 : 2 : 1.

(a) Prepare the revaluation account. [4] (b) Prepare the partners’ capital accounts. [5] (c) Explain why Wenlock’s closing capital is lower than the cash he paid in. [2]

8. Durrell, Everard and Faulds share profits 3 : 2 : 1. Faulds retires on 30 June 2026. Capitals are Durrell 54,000, Everard 36,000 and Faulds 24,000, and Faulds’ current account has a credit balance of 1,680. Buildings rise in value by 12,600, fixtures fall by 2,400 and inventory falls by 1,200. Goodwill is 30,000 and will not be kept; Durrell and Everard continue sharing 3 : 2. Faulds receives 12,180 by bank transfer and leaves the rest as a loan at 6% a year.

(a) Calculate the total amount due to Faulds. [4] (b) Calculate the closing capitals of Durrell and Everard. [3] (c) State the annual interest on Faulds’ loan and where it is recorded. [2]

9. Garside and Hebden share profits equally. Ivers is admitted on 1 October 2025, after which profits are shared Garside 2 : Hebden 2 : Ivers 1. Profit for the year ended 31 March 2026 was 60,000, earned evenly through the year. There are no salaries or interest. Calculate each partner’s share of the profit for the year. [4]

10. Using your answer to question 5, calculate each partner’s total net appropriation for the year. Evaluate whether Sallow should ask for the partnership agreement to be changed. [8]

Answers

1. Fixed: capital changes only when capital is introduced or withdrawn by agreement; a separate current account takes appropriations and drawings [1]. Fluctuating: no current account, so these go straight to capital, which changes every year [1]. [2] Examiner insight: Give the contrast both ways; describing only one method leaves the difference unstated.

2. Under the Partnership Act 1890 the advance earns 5% a year: 10,000 × 5% × 6/12 = 250 [1]. This is an expense, so profit for the year = 30,250 − 250 = 30,000 [1]. The Act gives no interest on capital and no salary, so both claims fail [1]. Profit is shared equally: 15,000 each (Mabbott also receives the 250 loan interest) [1]. [4] Examiner insight: The question tests the Act’s defaults, so working out the claimed salary or interest earns nothing.

3. 4,500 × 8% × 11/12 = 330 [1]; 3,600 × 8% × 7/12 = 168 and 1,200 × 8% × 2/12 = 16 [1]; total 514 [1]. [3] Examiner insight: Show each drawing’s month fraction so one slip does not hide correct method.

4. 50,000 × 5% × 9/12 = 1,875 and 42,000 × 5% × 3/12 = 525 [1]; total 2,400 [1]. [2] Examiner insight: The withdrawal reduces capital for the last three months only; using 42,000 for the whole year understates the interest.

5.

Sallow, Pengelly and Haverstock
Appropriation account for the year ended 31 October 2025
Profit for the year                                  18,600
Interest on drawings:  Sallow                300
                       Pengelly              240
                       Haverstock            160        700
                                                     19,300
Interest on capital:   Sallow              2,400
                       Pengelly            1,800
                       Haverstock          1,200    (5,400)
Salaries:              Pengelly            9,000
                       Haverstock          9,000   (18,000)
Residual loss                                       (4,100)
Shares of loss:        Sallow (2/5)       (1,640)
                       Pengelly (2/5)     (1,640)
                       Haverstock (1/5)     (820)   (4,100)

Interest on drawings added [1]; interest on capital [1]; salaries in full [1]; residual loss 4,100 [1]; shares 1,640, 1,640, 820 shown as losses [1]; title and layout [1]. [6] Examiner insight: Salaries and interest are credited in full even when profit cannot cover them.

6. (a)

Current accounts
                    Tregunna  Tunstall                       Tregunna  Tunstall
Int. on drawings         610       470  Balance b/d            2,200     1,350
Drawings              27,800    35,900  Int. on capital        3,000     1,500
Balance c/d            1,390         -  Salary                     -    16,000
                                        Share of profit       24,600    16,400
                                        Loan interest              -       600
                                        Balance c/d                -       520
                      29,800    36,370                        29,800    36,370
Balance b/d                -       520  Balance b/d            1,390         -

Opening balances [1]; interest on capital, salary and profit shares [1]; loan interest credited to Tunstall [1]; interest on drawings and drawings [1]; Tregunna 1,390 credit, Tunstall 520 debit [1]. (b)

                   Tregunna  Tunstall     Total
Capital accounts     60,000    30,000    90,000
Current accounts      1,390     (520)       870
                                         90,870

Debit balance shown in brackets and deducted [1]; total 90,870 [1]. [7] Examiner insight: Unpaid loan interest is owed to Tunstall, so it is credited to his account; leaving it out changes his closing balance.

7. (a)

Revaluation account
Equipment              3,200   Premises        14,000
Other payables           400
Capital: Vane          5,200
Capital: Wyatt         5,200
                      14,000                   14,000

Decreases and the new liability debited [1]; increase credited [1]; profit 10,400 [1]; 5,200 each to the old partners [1]. (b)

Capital accounts
               Vane    Wyatt  Wenlock                Vane    Wyatt  Wenlock
Goodwill      9,600    9,600    4,800  Balance b/d  32,000   28,000        -
Balance c/d  39,600   35,600   20,200  Bank              -        -   25,000
                                       Revaluation   5,200    5,200        -
                                       Goodwill     12,000   12,000        -
             49,200   45,200   25,000               49,200   45,200   25,000

Opening balances and Wenlock’s cash [1]; revaluation profit [1]; goodwill created 1 : 1 [1]; goodwill written off 2 : 2 : 1 [1]; closing 39,600, 35,600, 20,200 [1]. (c) Wenlock’s capital is debited with 4,800, his one-fifth share of the goodwill written off [1]. In effect he pays 4,800 to Vane and Wyatt, who each give up one-tenth of the profits and gain 2,400 [1]. [11] Examiner insight: Wenlock was not a partner when the revaluation gain arose; giving him a share of it is a common slip.

8. (a) Revaluation profit 12,600 − 2,400 − 1,200 = 9,000 [1]; Faulds’ share 1/6 = 1,500 [1]; goodwill share 30,000 × 1/6 = 5,000 [1]; amount due 24,000 + 1,680 + 1,500 + 5,000 = 32,180 [1]. (b) Revaluation shares Durrell 4,500, Everard 3,000 [1]; goodwill created 15,000 and 10,000, written off 18,000 and 12,000 [1]; Durrell 55,500, Everard 37,000 [1]. (c) Loan 32,180 − 12,180 = 20,000; interest 20,000 × 6% = 1,200 [1]; an expense in the income statement (the loan is a liability) [1]. [9] Examiner insight: Transfer the current account balance to capital first; leaving it out understates the amount due.

9. Six months before admission: 30,000 shared equally, Garside 15,000 and Hebden 15,000 [1]. Six months after: 30,000 shared 2 : 2 : 1, giving 12,000, 12,000 and 6,000 [1]. Totals: Garside 27,000 and Hebden 27,000 [1]; Ivers 6,000 [1]. [4] Examiner insight: Split the profit by time before applying either ratio; using the new ratio for the whole year gives Ivers profit earned before he joined.

10. Totals: Sallow 2,400 − 1,640 − 300 = 460; Pengelly 1,800 + 9,000 − 1,640 − 240 = 8,920 [1]; Haverstock 1,200 + 9,000 − 820 − 160 = 9,220; check 460 + 8,920 + 9,220 = 18,600 [1].

For a change: Sallow supplies about 44% of the capital but receives about 2.5% of the profit [1]. Salaries take priority, so when profit falls the residual loss wipes out most of Sallow’s reward, as he has no salary [1]. Higher interest on capital or a larger profit share would reward his capital more fairly [1].

Against: the salaries may reward full-time work, and one poor year may not justify a new agreement [1]. A compromise is to pay salaries only once profit passes an agreed figure [1].

Judgement: Sallow has a strong case, as the terms leave most risk with the largest investor, but any change needs all partners to agree [1]. [8] Examiner insight: Argue for and against the change, using the figures, then reach a clear verdict; a one-sided answer limits the credit available.

Where marks are usually lost

• Charging a partner’s loan interest in the appropriation account.
• Subtracting interest on drawings, or charging a full year on every drawing.
• Applying salaries or interest on capital where there is no agreement.
• Reducing salaries when profit is low instead of recording a residual loss.
• Giving an incoming partner a share of revaluation profit or goodwill created.
• Using one ratio for the whole year when a partner joins part-way through.

Next steps

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Official syllabus

OxfordAQA International AS and A-level Accounting (9615) specification, Version 1.2, for International AS exams May/June 2025 onwards and International A-level exams May/June 2026 onwards, published by OxfordAQA: section 3.2.5, Partnership accounts.