WAEC Financial Accounting 1992 Question 48

Ade and Okon are in partnership with the following partnership agreement:
Fixed Capital: Ade ₦15,000; Okon ₦25,000
Salary per annum: Ade ₦6,000; Okon ₦8,000
Interest on capital per annum: Ade 8%; Okon 8%
Profit or loss sharing ratio: Ade 40%; Okon 60%
The net profit for the year ended 31st December 1990 is ₦28,000 while drawings are ₦3,000 and ₦4,000 for Ade and Okon respectively.

What is Ade's share of the profit?

1. A.₦11,200
2. B.₦7,120
3. C.₦6,480
4. D.₦5,600
5. E.₦4,320.