WAEC Financial Accounting 2021 Question 7

Question 7

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.
Attama's share of profit is

  1. A.D 21,000
  2. B.D 19,428
  3. C.D 12,000
  4. D.D 9,000.
Show the answer and explanation

Answer: C (D 12,000)

Explanation

4/7 × residual 21,000 = D 12,000.