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?
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?
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Correct Answer: Option B
Explanation:
            Profit and Loss Appropriation A/C
            Profit and Loss Appropriation A/C
| partners salary - K       800Int.on capital -  M       2000              K 1000share of profit - M 4020             K  2680  6700                     10500 | Net profit b/d      10000Int. on drawings: M  500                                        10500 |