Ajem’s current account balance was?

Use the following information to answer the question below

Ajem and Ogah were in partnership sharing profits and losses in the ratio 2:3. Interest on capital and drawings were 5% and 3% respectively. The following details relate to the partnership for the year 2017.

	Ogah	Ajem
Capital Account	60,000	65,000
Current Account	40,000	50,000
Drawings	20,000	30,000
Salary	10,000	–

Net profit was 100,000

A. 65,000
B. 60,000
C. 42,000
D. 40,000

Correct Answer:

Option D = 40,000