Given: Net profit b/d.....................N10,000 Interest on capital:...M...........N2, 000 .......................K...........N1, 000 Partners' on salary....K...........N800 Interest on drawings...M...........N500 Profit sharing ratio M and K 3:2 Determine M's share of profit?

Given:

Net profit b/d.....................N10,000

Interest on capital:...M...........N2, 000

.......................K...........N1, 000

Partners' on salary....K...........N800

Interest on drawings...M...........N500

Profit sharing ratio M and K 3:2

Determine M's share of profit?

The correct answer is B. 4,020

Profit and Loss Appropriation A/C

partners salary - K 800 Int.on capital - M 2000 K 1000 share of profit - M 4020 K 2680 6700 10500

Net profit b/d 10000 Int. on drawings: M 500 10500