X and Y share profits 3:2. Interest on drawings: X 550, Y 450 (at 5%). Profit for year: 94,000. Loan interest paid to X: 3,000. Each partner drew an amount equal to their salary. What was Y's share of residual profit?

Home › MCQs › SSC Financial and Cost Accounting P-1 › Question #6114

SSC Financial and Cost Accounting P-1 QUESTION #6114

Question 1

X and Y share profits 3:2. Interest on drawings: X $550, Y $450 (at 5%). Profit for year: $94,000. Loan interest paid to X: $3,000. Each partner drew an amount equal to their salary. What was Y's share of residual profit?

$28,800
$29,200✔️
$30,000
$38,000

Correct Answer Explanation

Option B ($29,200) is correct.

X's salary = $550 ÷ 5% = $11,000; Y's salary = $450 ÷ 5% = $9,000

Residual profit = $94,000 − $3,000 + $1,000 − $11,000 − $9,000 = $73,000 (Interest on drawings added back: $550+$450=$1,000)

Y's share = 2/5 × $73,000 = $29,200

More Options