Neco 2019 Commerce Question 28

Practice objective / multiple choice question 28 from the 2019 Neco Commerce examination.

Neco 2019 Commerce Objective / Multiple Choice Medium Difficulty
Question 28 NECO • 2019 • COMMERCE • objective

Partners A and B start a partnership. A contributes \(\text{₦}300,000\) and B contributes \(\text{₦}200,000\). Profits are to be shared in the ratio of their capital contributions. In addition, A receives a fixed management allowance of \(\text{₦}50,000\) and B receives interest on his capital at 8% per annum. If the partnership earned a total profit of \(\text{₦}500,000\) in the second year, determine the amount of profit each partner receives.

Answer Options

A. A receives ₦350,000; B receives ₦216,000
Correct Answer B. A receives ₦310,400; B receives ₦189,600
C. A receives ₦296,000; B receives ₦204,000
D. A receives ₦320,000; B receives ₦180,000
Correct Answer
B
Correct Option:
A receives ₦310,400; B receives ₦189,600

About This Question

This is Neco 2019 Commerce Question 28. It is one of the objective questions from the 2019 Neco Commerce examination.

Difficulty level: Medium .

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