NABTEB Accounting 2020 Objective — Question 32
Question 32 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2020 Objective paper, with the correct answer and a full explanation.
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Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital, and interest on capital is 5%. The profit for the year is #150,000. Teteh's share of profit is
- A. #90,000Correct
- B. #75,000
- C. #60,000
- D. #50,000
Explanation
Ratio of capital 300,000:200,000 = 3:2. Teteh's share = 3/5 x 150,000 = #90,000.
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