Accounting WAEC

Their profit sharing ratio is?

Use the following information to answer the given question

J. Chike

N

B. Balla

N

Current Accounts balance(1/4/98) 4,000 6,000
Current Accounts balance (1/4/99) 7,000 ?
Drawings 1,500 1,500
Share of net profit ? 2,500

 

A. 1 : 8 : 1
B. 1 : 5 : 1
C. 1 : 25 : 1
D. 1 : 1

Correct Answer:

Option B – 1 : 5 : 1

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