WAEC Accounting 2014 Paper

Concept:Partnership profits are shared in the capital ratio after adjusting for interest on capital and interest on drawings.Explanation:Total interest on capital is $6\% \times (20,000 + 30,000) = 3,000$.Total interest on drawings is $10\% \times (8,000 + 2,000) = 1,000$.After adding interest on drawings to the year's profit and deducting interest on capital, the distributable profit available for sharing is $8,000$.The capital ratio of Aye to Bee is $20,000 : 30,000 = 2 : 3$.So Bee's share of the distributable profit is $\frac{3}{5} \times 8,000 = 4,800$.Answer:C. Le 4,800