Gce Model Questions Vol1 2019 Financial Accounting Question 35
Practice objective / multiple choice question 35 from the 2019 Gce Model Questions Vol1 Financial Accounting examination.
Three partners A, B and C run a business with profit‑sharing ratios 3:2:1. Their capital contributions are A \(\,\text{₦}30,000\), B \(\,\text{₦}20,000\) and C \(\,\text{₦}10,000\). Interest on capital is charged at 5 % per annum and salaries are A \(\,\text{₦}4,000\), B \(\,\text{₦}3,000\) and C \(\,\text{₦}2,000\). The business earned a net profit before interest and salaries of \(\,\text{₦}48,000\). During the year a new partner D was admitted, contributing \(\,\text{₦}15,000\) for a 1/5 share of the profit after interest and salaries have been accounted for.\n\nDetermine the amount of profit allocated to each partner (A, B, C and D) for the year.
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About This Question
This is Gce Model Questions Vol1 2019 Financial Accounting Question 35. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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