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

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