Use the following information to answer questions below
#60,000
#90,000
#75,000
#50,000
Correct answer is C
Ratio in their capital = 300,000/200,000 = 3/2 = 3: 2
Total ratio = 3+ 2 = 5
Interest on capital = 5%
Teteh = 5% x 300,000 = 15,000
Kukuma = 5% x 200,000 = 10,000
= 150,000 - ( 15,000 + 10,000)
= 150,000 - 25,000
= 125,000
Teteh's share of profit = 3/5 x 125,000
= 75,000
The document prepared by the buyer and sent to the seller listing the items to be supplied is
Purchase order
Credit note
Proforma invoice
Sales order
Correct answer is A
The purchase order is a document generated by the buyer and serves the purpose of ordering goods from the supplier. The document indicates the details on the items that are to be purchased, such as the types of goods, quantity and price.
Drawings made by a partner would be
Credited to current account
Credited to appropriation account
Debited to appropriation account
Debited to current account
Correct answer is D
Drawing is the amount withdrawn or taken out of the business by partners during the year. The drawings can be in cash or kind. it is debited to the current account.