Neco 2020 Financial Accounting Question 22
Practice objective / multiple choice question 22 from the 2020 Neco Financial Accounting examination.
Partners A and B start the year with capital of ₦120,000 and ₦80,000 respectively. Their profit‑sharing ratio at the beginning of the year is 3:2. On 1 July A withdraws ₦20,000 and B withdraws ₦10,000 as drawings. Also on 1 July they agree to change the profit‑sharing ratio to 4:3 for the remainder of the year. Interest on capital is charged at 10\% per annum and interest on drawings at 6\% per annum (simple). A receives a salary of ₦5,000 per month for the whole year. The profit before any adjustments for the year is ₦180,000. Determine the final amount of profit allocated to A and to B.
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About This Question
This is Neco 2020 Financial Accounting Question 22. It is one of the objective questions from the 2020 Neco Financial Accounting examination.
Difficulty level: Hard .
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