Given: Net profit b/d.....................N10,000 Interest on capital:...M...........N2, 000 .......................K...........N1, 000 Partners' on salary....K...........N800 Interest on drawings...M...........N500 Profit sharing ratio M and K 3:2 Determine M's share of profit?
A. 6,280 B. 4,020 C. 2,820 D. 2,280
Correct Answer: B
Explanation
            Profit and Loss Appropriation A/C
partners salary - KÂ Â Â Â Â Â Â 800Int.on capital -Â Â MÂ Â Â Â Â Â Â 2000Â Â Â Â Â Â Â Â Â Â Â Â Â Â KÂ 1000share of profit -Â MÂ 4020Â Â Â Â Â Â Â Â Â Â Â Â Â KÂ Â 2680Â Â 6700Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 10500
Net profit b/d      10000Int. on drawings: M  500                                        10500
