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WAEC Financial Accounting 2006 Question 18

Question 18

Partnership Accounts

(Ebrima; Jaiteh)
Capital: D2,000; D10,000
Drawings: D4,000; D3,000
Salary: –; D900
Profit sharing ratio: 3/5; 2/5
Profit for the year before 5% interest on capital was D18,000
Ebrima's share of profit was

  1. A.D10,440
  2. B.D9,900
  3. C.D7,560
  4. D.D6,600
Show the answer and explanation

Answer: B (D9,900)

Explanation

Interest 100 + 500 and salary 900 leave 16,500; Ebrima 3/5 = D9,900.