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WAEC Accounting 2010 Paper

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Question : 31

Total: 44

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:

	ABA ₦	BABA ₦	TOTAL ₦
Capital	20,000	15,000	35,000
Drawings	2,520	-	2,520
Interest on drawings	504	-	504
Interest on capital	2,000	1,500	3,500
Net profit $31/12/08$	-	-	34,636

Aba's share of profit is

₦21,504
₦19,792
₦18,352
₦16,128

Solution:

Share of profit = $\;\frac{4}{4\;+\;3} = \frac{4}{7}$ = 0.5714

0.5714 x 34636 = 19,792

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