WAEC Accounting 2010 Paper

Concept:Aba and Baba share profits in the ratio of $4 : 3$.Aba’s share of the net profit is calculated by applying his fraction of the total ratio to the profit available for distribution.Explanation:First, find the total number of parts in the profit-sharing ratio.Total parts $= 4 + 3 = 7$.Aba’s share in the profit is given by the fraction $\frac{4}{7}$.The net profit given in the extract for the year ended $31/12/08$ is ₦34,636.To find Aba’s share, multiply the net profit by his fraction of the ratio.Aba’s share of profit $= \frac{4}{7} \times 34,636$Aba’s share of profit $= \text{NGN 19,792}$.This amount is the direct distributive share of the profit based solely on the agreed ratio.Answer:Aba’s share of profit is ₦19,792, which is option B.