Test Index

WAEC Accounting 2015 Paper

Question : 38

Total: 50

\begin{array}{c|c|c} & \text{Ade(N)} & \text{Bola(N)} \\ \hline \text{Capital} & \text{40,000} & \text{30,000} \\ \hline \text{Drawings} & \text{10,000} & \text{15,000} \end{array}

Bola's share of profit is

Solution:

Concept:

Bola’s share of profit depends entirely on the total profit available for sharing, which must be known before any division.

Explanation:

Bola’s interest on drawings is

5\% \times 15{,}000 = N750

This interest would be added back to net profit or used to adjust the profit-sharing amount.

However, the total profit for the year is not given in the question.

Without the total profit figure, the equal share between Ade and Bola cannot be calculated.

Therefore, none of the listed amounts can be confirmed as Bola’s share of profit.

Answer:

The correct option is not determinable from the information provided.

Go to Question:

Prev Question

Next Question