Neco 2023 Commerce Question 31

Practice objective / multiple choice question 31 from the 2023 Neco Commerce examination.

Neco 2023 Commerce Objective / Multiple Choice Medium Difficulty
Question 31 NECO • 2023 • COMMERCE • objective

A business started as a partnership with three partners who agreed to share profit in the ratio 2:3:5. After two years the partnership was converted into a limited company that issued 1,000 ordinary shares at a nominal price of \(\text{₦}500\) each. The shares were allotted to the original partners in proportion to their profit‑sharing ratios. The company later declared a dividend equal to 20\% of its paid‑up capital. Determine the amount of dividend each original partner receives.

Answer Options

Correct Answer A. Partner 1: ₦20,000; Partner 2: ₦30,000; Partner 3: ₦50,000
B. Partner 1: ₦10,000; Partner 2: ₦15,000; Partner 3: ₦25,000
C. Partner 1: ₦25,000; Partner 2: ₦37,500; Partner 3: ₦62,500
D. Partner 1: ₦30,000; Partner 2: ₦20,000; Partner 3: ₦50,000
Correct Answer
A
Correct Option:
Partner 1: ₦20,000; Partner 2: ₦30,000; Partner 3: ₦50,000

About This Question

This is Neco 2023 Commerce Question 31. It is one of the objective questions from the 2023 Neco Commerce examination.

Difficulty level: Medium .

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