JAMB Principles of Accounts 2012 Question 38

Question 38

Partnership Accounts

The partners capital are: Modibbo ₦60,000 and Jakata ₦90,000. The partners share profit and losses in the ratio of their capital contributions.
The net profit for the year is ₦12,000
What is Jakata's profit sharing ratio?

  1. A.3:5
  2. B.1:2
  3. C.2:5
  4. D.1:5.
Show the answer and explanation

Answer: A (3:5)

Explanation

Total capital = 150 000. Jakata's share = 90 000/150 000 = 3/5, written 3:5.