Qualification > Commerce

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

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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  ;D

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

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