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WAEC Financial Accounting 2025 Question 32

Question 32

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.
The balance on Abu's current account is

  1. A.GH¢32,600.
  2. B.GH¢21,400.
  3. C.GH¢14,600.
  4. D.GH¢9,400.
Show the answer and explanation

Answer: C (GH¢14,600.)

Explanation

Interest 2,000 + share of profit 30,600 − drawings 18,000 = GH¢14,600.