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WAEC Financial Accounting 1999 Question 22

Question 22

Partnership Accounts

Current Accounts balance (1/4/98): J. Chike N4,000; B. Balla N6,000
Current Accounts balance (1/4/99): J. Chike N7,000; B. Balla ?
Drawings: J. Chike N1,500; B. Balla N1,500
Share of net profit: J. Chike ?; B. Balla N2,500
Their profit sharing ratio is

  1. A.1.8:1
  2. B.1.5:1
  3. C.1.25:1
  4. D.1:1.
Show the answer and explanation

Answer: A (1.8:1)

Explanation

Chike 4,500 : Balla 2,500 = 1.8 : 1.