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JAMB Principles of Accounts 2004 Question 40

Question 40

Partnership Accounts

Use the information below to answer questions 39 and 40.
Jumoke and Kunle have an original investment of ₦25,000 and ₦15,000 respectively in a partnership. The articles of partnership provide 3% interest on capital and salaries of ₦1,500 and ₦1,000 respectively for the partners. The profits and losses are to be shared in the ratio 3:2. Miscellaneous expenses of ₦2,500 were incurred with gross profit of ₦6,500 during the financial year.
What is Kunle's share of the profit?

  1. A.₦600
  2. B.₦300
  3. C.₦180
  4. D.₦120
Show the answer and explanation

Answer: D (₦120)

Explanation

Interest = 3% of 40,000 = ₦1,200; salaries ₦2,500. Residue = 4,000 − 3,700 = ₦300. Kunle gets 2/5 × 300 = ₦120.