- 1 Marks
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
Answer:
E. ₦8,000,000
Explanation:
The total profit is distributed after ensuring Okon’s minimum share of ₦3,800,000 is met. The remaining profit is split between Ajani and Bala as per their ratio of 5:4. Ajani’s share = 5/9 of ₦14,400,000 = ₦8,000,000.
- Tags: Guaranteed Share, Partnership, Profit Sharing
- Level: Level 1
- Uploader: Kwame Aikins