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Use the information below to answer this question The partnership agreement betw...


Question

Use the information below to answer this question The partnership agreement between Abba, Baba and Kaka contains the following provision:

(i) 5% interest to be paid on capital and no interest to be charged on drawings

(ii) Profits and losses to be shared in the ratio 3:2:1 respectively

(iii) net profit as at 31/12/95 ₦2,250.

.................Abba......Baba.......Kake

Capital..........5000......4000......3000

Current account...250......100.......175

Salary............300......300.......---

Drawings..........600......500........250

Current account balance of Kaka at the end of the year will be

Options

A)
₦250
B)
₦350
C)
₦175
D)
₦325

The correct answer is A.


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