Home » Past Questions » Accounts » Use the following information to answer the given question:\(\begin{array}{c|c} & Ade & Okon \\ & ₦ & ₦ \\ \hline \text{Fixed Capital} & 15,000 & 25,000 \\ \text{Salary per annum} & 6,000 & 8,000 \\ \text{Interest on capital per annum} & \text{8%} & \text{8%} \\ \text{Profit or loss sharing ratio} & \text{40%} & \text{60%}\end{array}\)The net profit for the year ended 31st December 1990 is ₦28,000 while drawing ...

Use the following information to answer the given question:\(\begin{array}{c|c} & Ade & Okon \\ & ₦ & ₦ \\ \hline \text{Fixed Capital} & 15,000 & 25,000 \\ \text{Salary per annum} & 6,000 & 8,000 \\ \text{Interest on capital per annum} & \text{8%} & \text{8%} \\ \text{Profit or loss sharing ratio} & \text{40%} & \text{60%}\end{array}\)The net profit for the year ended 31st December 1990 is ₦28,000 while drawing ...


Question

Use the following information to answer the given question:

\(\begin{array}{c|c} & Ade & Okon \\ & ₦ & ₦ \\ \hline \text{Fixed Capital} & 15,000 & 25,000 \\ \text{Salary per annum} & 6,000 & 8,000 \\ \text{Interest on capital per annum} & \text{8%} & \text{8%} \\ \text{Profit or loss sharing ratio} & \text{40%} & \text{60%}\end{array}\)

The net profit for the year ended 31st December 1990 is ₦28,000 while drawing are ₦3,000 and ₦4,000 for Ade and Okon respectively. What is Ade's share of the profit?

Options

A) ₦11,200

B) ₦7,120

C) ₦6,480

D) ₦5,600

E) ₦4,320

The correct answer is E.


More Past Questions:


Discussion