WAEC Financial Accounting 2022 Question 33

Question 33

Partnership Accounts

Use the following information to answer questions 32 to 34
Teteh and Kukuma are in partnership with capital balances of ₦300,000 and ₦200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is ₦150,000 and the interest on capital is 5%.
Kukuma's current account balance is

  1. A.₦90,000
  2. B.₦70,000
  3. C.₦60,000
  4. D.₦50,000
Show the answer and explanation

Answer: C (₦60,000)

Explanation

Interest 10,000 + profit share (2/5 × 125,000) 50,000 = ₦60,000.