Neco 2024 Financial Accounting Question 4

Three partners A, B and C share profit and loss in the ratio 3:2:1. Their opening capital balances are A: \( \text{₦}300{,}000 \), B: \( \text{₦}200{,}000 \), C: \( \text{₦}100{,}000 \). During the year the partnership earned a net profit before interest and salary of \( \text{₦}180{,}000 \). Interest on capital is charged at 10% per annum on opening capitals. Partner B receives a salary of \( \text{₦}30{,}000 \). Partner C withdraws \( \text{₦}20{,}000 \) during the year. After charging interest and salary, 40% of the remaining profit is retained in the business and the rest is distributed according to the profit‑sharing ratio. Determine the closing capital balance of each partner at year‑end.