Partnerships: Financial Statements & Notes is one of 9 topics in the Grade 11 Accounting CAPS syllabus, covered across 3 lessons on Study Vault. Below are real practice questions from this topic with full worked answers.
Sample practice questions
Easy
1. A partnership's Statement of Comprehensive Income calculates Gross Profit as:
Sales minus Cost of Sales
Sales minus Operating Expenses
Sales plus Cost of Sales
Net Profit minus Interest Expense
Answer: Sales minus Cost of Sales — Gross Profit = Sales - Cost of Sales, exactly the same formula used for a sole trader or a company.
Easy
2. Unlike a company's Income Statement, a partnership's Statement of Comprehensive Income has no line for:
Income tax, since partnerships do not pay income tax on their own profit
Sales
Cost of Sales
Operating expenses
Answer: Income tax, since partnerships do not pay income tax on their own profit — A partnership does not pay income tax on its own profit; partners are taxed personally on their individual share, so there is no income tax line in the partnership's statement.
Medium
3. A partnership had Sales of R620 000 and Cost of Sales of R372 000. Calculate the gross profit, in rand.
