WAEC Financial Accounting 1993 Question 29

Question 29

Partnership Accounts

John and Johnson are in partnership, sharing profit and losses in the ratio 3:2. Other information are as follows:
Capital: John ₦20,000; Johnson ₦10,000
Drawings: John ₦2,000; Johnson ₦3,000
Interest on capital: 5%
Interest on drawings: 10%
Profit: ₦6,000

What is Johnson's share of the profit?

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

Answer: E (₦2,000.)

Explanation

Johnson gets 2/5 of 5,000 = ₦2,000.