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WAEC Financial Accounting 2021 Question 6

Question 6

Partnership Accounts

Use the following information to answer questions 6 and 7.
Attama and Wawa were in partnership sharing profits and losses in the ratio 4:3. Attama was entitled to a salary of D 13,000 per annum. A net profit of D 34,000 was made for the year.
The residual profit of the business for the year is

  1. A.D 47,000
  2. B.D 34,000
  3. C.D 22,000
  4. D.D 21,000.
Show the answer and explanation

Answer: D (D 21,000.)

Explanation

Residual profit = 34,000 − Attama's salary 13,000 = D 21,000.