Use the following information to answer the giv... - WAEC Accounting 2010 Question
Use the following information to answer the given question, Aba and Baba are partners who agreed to share profits and losses in the ratio 4 : 3 respectively. Extracts from their books for the year ended 31/12/08 are:
\(\begin{array}{c|c} & \text{ABA} & \text{BABA} & \text{TOTAL}\ & ₦ & ₦ & ₦ \ \hline \text{Capital} & 20,000 & 15,000 & 35,000 \ \text{Drawings} & 2,520 & - & 2,520 \ \text{Interest on drawings} & 504 & - & 504\ \text{Interest on capital} & 2,000 & 1,500 & 3,500 \ \text{Net profit 31/12/08} & - & - & 34,636\end{array}\)
Aba's share of profit is
\(\begin{array}{c|c} & \text{ABA} & \text{BABA} & \text{TOTAL}\ & ₦ & ₦ & ₦ \ \hline \text{Capital} & 20,000 & 15,000 & 35,000 \ \text{Drawings} & 2,520 & - & 2,520 \ \text{Interest on drawings} & 504 & - & 504\ \text{Interest on capital} & 2,000 & 1,500 & 3,500 \ \text{Net profit 31/12/08} & - & - & 34,636\end{array}\)
Aba's share of profit is
A
15%
B
10%
C
8%
D
5%
correct option: b
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