Guaranteed Share

FA – May 2021 – L1 – SA – Q11 – Partnership Accounts

Determine a partner's share of profit when minimum profit guarantee is in place.

Question

Ajani, Bala, and Okon are in partnership sharing profit in ratio 5:4:2. During the period, the partnership made a profit of ₦18,200,000 after deducting partners’ salary and interests on capital. Ajani and Bala guaranteed Okon a minimum share of profit of ₦3,800,000. How much is Ajani’s share of the profit?

A. ₦4,472,727
B. ₦6,400,000
C. ₦6,618,181
D. ₦7,781,818
E. ₦8,000,000

Answer

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Tags: Guaranteed Share, Partnership, Profit Sharing
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2021

Question Tag: Guaranteed Share

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FA – May 2021 – L1 – SA – Q11 – Partnership Accounts

Determine a partner's share of profit when minimum profit guarantee is in place.

FA – May 2021 – L1 – SA – Q11 – Partnership Accounts

Determine a partner's share of profit when minimum profit guarantee is in place.

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Determine a partner's share of profit when minimum profit guarantee is in place.

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Determine a partner's share of profit when minimum profit guarantee is in place.

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