JAMB Accounting 2009 Objective — Question 39

Question 39 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2009 Objective paper, with the correct answer and a full explanation.

39. Net profit b/d #10,000; Interest on capital: M #2,000, K #1,000; Partners' salary K #800; Interest on drawings M #500; Profit sharing ratio M and K = 3:2. Determine M's share of profit.

A. #6,280
B. #4,020Correct
C. #3,820
D. #2,280

Explanation

Divisible profit = 10,000+500(interest on drawings added back)-2,000-1,000-800 = 6,700. M's share = 3/5 x 6,700 = #4,020.

Sign up free to unlock

Score tracking
Practice history
Saved questions
Progress dashboard
Personalized sessions
Weak-topic breakdown

…and/or go further with premium services and No Ads.

Create free account

More questions from Accounting 2009 Objective More Accounting past papers