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JAMB Principles of Accounts 1995 Question 36

Question 36

Partnership Accounts

Halidu and Hamed are business partners with ₦30 000 and ₦20 000 capital respectively. At the end of the financial year, a profit of ₦12 000, which included Halidu's salary of ₦3 000, was made.
Halidu's share of the profit is

  1. A.₦7 500
  2. B.₦6 000
  3. C.₦5 400
  4. D.₦4 500
Show the answer and explanation

Answer: C (₦5 400)

Explanation

Profit left after Halidu's salary = 12 000 − 3 000 = ₦9 000, shared in the capital ratio 3 : 2. Halidu's share = 9 000 × 3/5 = ₦5 400.