Question 38
Partnership AccountsThe 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?
- A.3:5
- B.1:2
- C.2:5
- 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.