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WAEC Financial Accounting 2003 Question 16

Question 16

Partnership Accounts

Capital Accounts: Ojo N40,000; Aina N20,000
Drawings: Ojo N10,000; Aina N6,000
Interest on capital 5%
Interest on drawings 10%
Net profit for the year N30,000
Profit sharing ratio: Ojo 2/3, Aina 1/3
Aina's Current Account balance is

  1. A.N9,933
  2. B.N9,533
  3. C.N6,600
  4. D.N3,933
Show the answer and explanation

Answer: D (N3,933)

Explanation

Interest 1,000 + share 9,533 − drawings 6,000 − interest on drawings 600 = N3,933.