Neco Model Questions Vol1 2023 Commerce Question 2

Practice objective / multiple choice question 2 from the 2023 Neco Model Questions Vol1 Commerce examination.

Neco Model Questions Vol1 2023 Commerce Objective / Multiple Choice Medium Difficulty
Question 2 NECO_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • objective

In a partnership, A, B and C invest capital of \(₦200,000\), \(₦300,000\) and \(₦500,000\) respectively. The profit‑sharing agreement states that profit is divided in proportion to capital, and each partner who has been in the business for more than 5 years receives an additional \(5\%\) of the total profit. Only A and C satisfy this condition. The partnership earned a net profit of \(₦240,000\) before paying interest on a bank loan of \(₦100,000\) at \(8\%\) per annum for the year. Determine the amount each partner receives after the loan interest is deducted.

Answer Options

A. A: ₦50,000; B: ₦65,000; C: ₦125,000
B. A: ₦55,000; B: ₦60,000; C: ₦115,000
C. A: ₦53,360; B: ₦62,640; C: ₦115,000
Correct Answer D. A: ₦53,360; B: ₦62,640; C: ₦116,000
Correct Answer
D
Correct Option:
A: ₦53,360; B: ₦62,640; C: ₦116,000

About This Question

This is Neco Model Questions Vol1 2023 Commerce Question 2. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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