Gce Model Questions Vol1 2023 Financial Accounting Question 12
Practice objective / multiple choice question 12 from the 2023 Gce Model Questions Vol1 Financial Accounting examination.
Three partners A, B and C run a business. Their capital contributions are \(30,000\), \(20,000\) and \(10,000\) respectively. The partnership agreement provides: (i) interest on capital at 5% per annum, (ii) a salary to partner A of \(4,000\) per year, and (iii) profit sharing in the ratio 3:2:1 after the above adjustments. During the year, partner C lent \(2,000\) to the partnership; interest on this loan is charged at 6% per annum and is to be treated as an expense. The profit before any adjustments is \(31,120\). Determine the amount of profit allocated to partner B.
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About This Question
This is Gce Model Questions Vol1 2023 Financial Accounting Question 12. It is one of the objective questions from the 2023 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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