Question on: JAMB Accounting - 2023
Dairo and Segun are in partnership sharing profits and losses in the ratio 2:3 respectively. The information below relates to their business for the year ended 31st December 2018.
| Drawings: |
₦ |
| Dairo | 12000 |
| Segun | 18000 |
| Capital: | |
| Dairo | 120000 |
| Segun | 60000 |
- Interest on drawings 10%
- Interest on capital 5%
- Profit for the year ₦36,000
- Salary: Segun ₦10,000
Segun's share of profit is ___?
A
₦12,000
B
₦21,400
C
₦14,600
D
₦16,400
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Correct Option: A
Here's how to calculate Segun's share of the profit:
-
Calculate Interest on Drawings:
- Dairo: ₦12,000 * 10% = ₦1,200
- Segun: ₦18,000 * 10% = ₦1,800
-
Calculate Interest on Capital:
- Dairo: ₦120,000 * 5% = ₦6,000
- Segun: ₦60,000 * 5% = ₦3,000
-
Prepare the Profit and Loss Appropriation Account:
| Particulars |
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