Use the following information to answer the question below Ata. Bubu and Chikum were in partnership sharing profits and losses in proportion to their capita...

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The balance in Chikum's current account is N9,000. To calculate the balance in Chikum's current account, we need to first calculate the profit sharing ratio for the partners. The total capital of the partnership is N90,000, and each partner's capital contribution is as follows: - Ata: N40,000 - Bubu: N30,000 - Chikum: N20,000 The profit sharing ratio for the partners is therefore: - Ata: 40,000/90,000 = 4/9 - Bubu: 30,000/90,000 = 1/3 - Chikum: 20,000/90,000 = 2/9 Next, we need to calculate the interest on capital for each partner. The interest on capital is calculated as follows: Interest on capital = Capital * Interest rate Interest on Ata's capital = N40,000 * 5% = N2,000 Interest on Bubu's capital = N30,000 * 5% = N1,500 Interest on Chikum's capital = N20,000 * 5% = N1,000 The total interest on capital for the partnership is N4,500. To calculate the profit for each partner, we subtract the interest on capital and drawings from their share of the net profit: - Ata: (4/9 * N40,500) - N2,000 - N8,000 = N11,000 - Bubu: (1/3 * N40,500) - N1,500 - N5,000 = N3,000 - Chikum: (2/9 * N40,500) - N1,000 - 0 = N6,000 Finally, we can calculate the balance in Chikum's current account as follows: Balance in Chikum's current account = Chikum's share of the profit - Chikum's interest on capital - Chikum's drawings Balance in Chikum's current account = N6,000 - N1,000 - 0 Balance in Chikum's current account = N5,000 Therefore, the balance in Chikum's current account is N9,000.