Gce Model Questions Vol1 2018 Commerce Question 10

Practice objective / multiple choice question 10 from the 2018 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2018 Commerce Objective / Multiple Choice Medium Difficulty
Question 10 GCE_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

Three partners A, B and C start a partnership with capital contributions of ₦500,000, ₦300,000 and ₦200,000 respectively. The partnership agreement provides for interest on capital at 8 % per annum to be paid to each partner, and a fixed salary of ₦50,000 per month to partner A for managerial duties. After paying interest and salary, the net profit for the year is ₦720,000. Determine the amount of the remaining profit each partner receives when it is divided in the ratio of their capital contributions. Also state the total amount each partner receives including interest, salary (where applicable) and profit share.

Answer Options

A. Remaining profit shares - A: ₦320,000, B: ₦192,000, C: ₦128,000; Total received - A: ₦360,000, B: ₦216,000, C: ₦144,000
B. Remaining profit shares - A: ₦295,000, B: ₦177,000, C: ₦118,000; Total received - A: ₦385,000, B: ₦201,000, C: ₦134,000
C. Remaining profit shares - A: ₦30,000, B: ₦18,000, C: ₦12,000; Total received - A: ₦670,000, B: ₦42,000, C: ₦28,000
Correct Answer D. Remaining profit shares - A: ₦20,000, B: ₦12,000, C: ₦8,000; Total received - A: ₦660,000, B: ₦36,000, C: ₦24,000
Correct Answer
D
Correct Option:
Remaining profit shares - A: ₦20,000, B: ₦12,000, C: ₦8,000; Total received - A: ₦660,000, B: ₦36,000, C: ₦24,000

About This Question

This is Gce Model Questions Vol1 2018 Commerce Question 10. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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