Neco Model Questions Vol1 2019 Financial Accounting Question 47

Practice objective / multiple choice question 47 from the 2019 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2019 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 47 NECO_MODEL_QUESTIONS_VOL1 • 2019 • FINANCIAL_ACCOUNTING • objective

Three partners A, B and C share profits in the ratio 3:2:1. Their year‑end capital balances are \(\N{Naira}120,000\), \(\N{Naira}80,000\) and \(\N{Naira}50,000\) respectively. Before profit distribution the following adjustments are made: interest on capital at 10% per annum, a salary of \(\N{Naira}12,000\) to partner B, and interest on a loan of \(\N{Naira}30,000\) given by partner C to the partnership at 12% per annum. The partnership earned a net profit of \(\N{Naira}82,600\) before these adjustments. Determine the amount of profit finally allocated to each partner.

Answer Options

A. A: \N{Naira}33,000; B: \N{Naira}34,000; C: \N{Naira}12,000
B. A: \N{Naira}33,000; B: \N{Naira}22,000; C: \N{Naira}15,600
Correct Answer C. A: \N{Naira}33,000; B: \N{Naira}34,000; C: \N{Naira}15,600
D. A: \N{Naira}30,000; B: \N{Naira}32,000; C: \N{Naira}20,600
Correct Answer
C
Correct Option:
A: \N{Naira}33,000; B: \N{Naira}34,000; C: \N{Naira}15,600

About This Question

This is Neco Model Questions Vol1 2019 Financial Accounting Question 47. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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