Accounting HELP !!!!!!!!!!!!!!!!!!

[holtadit]

Can someone explain how the answer is A ? I have no idea.

Please provide a thorough explanation.

[nid404]

I don't take accounts...
but from the little knowledge i have

See residual profit comes after detucting salary and interests.
salary+interests= 4000+1100+1300=6400
net profit-6400=residual profit=24200-6000=17800
residual profit shared equally...50% of 17800=8900

[haris94]

yup nid is right

this question is nothing but a mini profit/loss appropriation a/c
{net profit + interest on drawings - interest on capital - salary} will give u residual profit, then divide this into the share of profit
in this case there is no interest on drawings and share of profit is 50/50

[holtadit]

I get it. I was adding interest on capital because I thought it was interest on DRAWINGS.


Silly, stupid me 

[qwert]

Plz can anybody tell me how to calculate the capital employed ? (especially if there is a list of all the assets and liabilities)

[capricorn]

for finding capital employed....
fixed assets + ( curent assets - current laibilities )