Question 7
Partnership AccountsUse 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
- A.D 21,000
- B.D 19,428
- C.D 12,000
- D.D 9,000.
Show the answer and explanation
Answer: C (D 12,000)
Explanation
4/7 × residual 21,000 = D 12,000.