passwella.
Menu

WAEC Financial Accounting 2025 Question 30

Question 30

Partnership Accounts

Use the following information to answer questions 30 to 32
Abu: Capital GH¢40,000; Drawings GH¢18,000
Ojo: Capital GH¢20,000; Drawings GH¢12,000
Profit for the year was GH¢54,000: 5% interest on capital and their profit or loss sharing ratio is 3:2 respectively.
Abu's share of profit is

  1. A.GH¢32,400.
  2. B.GH¢30,600.
  3. C.GH¢21,600.
  4. D.GH¢20,400.
Show the answer and explanation

Answer: B (GH¢30,600.)

Explanation

Interest on capital = 2,000 + 1,000 = 3,000; residual 51,000 × 3/5 = GH¢30,600.