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Use the information below to answer this question. Buhari and Osinbajo are in partnership with...

Accounts - Principles of Accounts
JAMB 2015

Use the information below to answer this question.
Buhari and Osinbajo are in partnership with the following partnership agreement
Buhari              Osinbajo

Capital 40, 000    70, 000
Salary 10, 000      15, 000
Int.on capital 5%      5%
Profit/loss sharing ratio 40 : 60
The net profit for the year ended is N80,000.
"Drawings are N80, 000 and N12, 000 for Buhari and Osinbajo respectively"

What is Osinbajo share of profit?

  • A. N19, 800
  • B. N49, 500
  • C. N48, 000
  • D. N29, 700
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Correct Answer: Option D
Explanation
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