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Use the following information to answer the question given. \(\begin{array}{c|c} Capital & Le \\ \hline...

Accounts - Principles of Accounts
WAEC 2014

Use the following information to answer the question given.

\(\begin{array}{c|c} Capital & Le \\ \hline Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \text{Interest on capital-6%} & \\ \text{Interest on drawings - 10%} & \end{array}\)
Profit sharing is in the ratio of capital. The divisible profit is
  • A. Le 14,000
  • B. Le 12,000
  • C. Le 10,000
  • D. Le 8,000
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Correct Answer: Option D
Explanation
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