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JAMB Principles of Accounts 2005 Question 43

Question 43

Partnership Accounts

Use the information below to answer questions 42 and 43.
Jide and Haruna contribute ₦12 000 each as capital and share profit equally. Jide draws ₦1 500 and Haruna ₦1 700 half-yearly. The profit for the year is ₦10 000. Jide receives a salary of ₦2 000.
The balances of current accounts of Jide and Haruna are respectively

  1. A.₦6 000 and ₦5 000
  2. B.₦3 000 and ₦3 400
  3. C.₦4 000 and ₦4 000
  4. D.₦3 000 and ₦600
Show the answer and explanation

Answer: D (₦3 000 and ₦600)

Explanation

Residue 8 000 shared equally = ₦4 000 each. Jide: 4 000 + 2 000 − drawings 3 000 = ₦3 000. Haruna: 4 000 − 3 400 = ₦600.