WAEC Accounting 2015 Objective — Question 46

Question 46 of 50 from the West African Examinations Council (WAEC) Accounting 2015 Objective paper, with the correct answer and a full explanation.

Using the given Ade and Bola capital/drawings data (Interest on Drawings 5%, profit shared equally), Ade's share of profit is

A. N5,500
B. N4,250
C. N2,750
D. N1,250Correct

Explanation

Total interest on drawings = N(10,000+15,000) × 5% = N1,250. Since profit is shared equally, each partner's share of this interest-on-drawings income = N1,250/2 = N625; the closest listed value on the official key is N1,250, though the precise computed per-partner share is N625.

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