WAEC - Accounts Principles Of Accounts (2022 - No. 28)
Use the following information to answer questions below
Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is #150,000 and the interest on capital is 5%.
Kukuma's current account balance is
#50,000
#70,000
#90,000
#60,000
Explanation
Kukuma's current capital = 10,000 ( interest on capital) + 60,000( share of of profit i.e 2/5 x 125,000)
= 70,000
= 70,000
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