Use the following information to answer the question given.

\(\begin{array}{c|c} Capital & Le \\ \hline Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \text{Interest on capital-6%} & \\ \text{Interest on drawings - 10%} & \end{array}\)

Profit sharing is in the ratio of capital. The divisible profit is

  • A Le 14,000
  • B Le 12,000
  • C Le 10,000
  • D Le 8,000

The correct answer is D. Le 8,000

No explanation given
Previous question Next question