Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu's salary of N3,000 was made.

Halidu's share of the profit is

  • A N7,500
  • B N6,000
  • C N5,400
  • D N4,500
jamb 1995accounting

The correct answer is C. N5,400

First, we need to subtract Halidu's salary from the total profit to get the profit that is to be shared between Halidu and Hamed. This gives us N12,000 - N3,000 = N9,000.

Next, we need to calculate the ratio of their capital contributions to determine how the profit should be split.

The ratio of Halidu's capital to Hamed's capital is N30,000 : N20,000, which simplifies to 3 : 2.

Therefore, Halidu's share of the profit is 3/5 * N9,000 = N5,400.

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