Business, 03.07.2021 20:40, krrrr

Use the following to answer Questions 1 and 2 Ade and Weah are in partnership sharing profits in ratio 3:2. Their capital are $4,000,000 and $2,000,000 respectively and their drawings were $1,800,000 and $1,200,000.
The profit for the year before taking into consideration the following transactions was $5,400,000

i. Repair of partnership vehicle paid personally by Weah was $20,000
ii. Interest on loan advanced by Ade was $25,000
iii. Interest on drawings to be provided at 5%

1. Calculate the amount of profits available for distribution
2. By how much would Ade current account balance increase?

Answers: 3

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Use the following to answer Questions 1 and 2 Ade and Weah are in partnership sharing profits in ra...