WAEC Accounting 2024 Paper

Concept:In a partnership, net profit is first adjusted for interest on capital and partners’ salaries before the remaining profit is shared according to the agreed ratio.Explanation:Net profit for appropriation = $\#120{,}000$.Interest on capital:Taiyelolu: $10\% \times \#200{,}000 = \#20{,}000$.Ejire: $10\% \times \#100{,}000 = \#10{,}000$.Total interest on capital = $\#20{,}000 + \#10{,}000 = \#30{,}000$.Profit left after interest = $\#120{,}000 - \#30{,}000 = \#90{,}000$.Total annual salaries = $\#28{,}000 + \#24{,}000 = \#52{,}000$.Profit remaining for sharing = $\#90{,}000 - \#52{,}000 = \#38{,}000$.This remaining profit is shared equally:$\#38{,}000 \div 2 = \#19{,}000$ for each partner.Answer:Each partner’s share of profit = $\#19{,}000$.Correct option: D. $\#19{,}000$.