Use the following information below to answer this question. Attama and Wawa were in partnership sharing profits and losses in the ratio 4:3. Attama was ent...
Question 1 Report
Use the following information below to answer this question.
Attama and Wawa were in partnership sharing profits and losses in the ratio 4:3. Attama was entitled to a salary of D13,000 per annum. A net profit of D34,000 was made for the year.
Attama's share of profit is
Answer Details
Attama's share of profit can be calculated using the following steps:
Step 1: Determine the total profit to be shared between Attama and Wawa.
The total profit is given as D34,000.
Step 2: Calculate Attama's salary for the year.
Attama's salary for the year is D13,000.
Step 3: Determine the remaining profit to be shared between Attama and Wawa.
The remaining profit is obtained by subtracting Attama's salary from the total profit: D34,000 - D13,000 = D21,000.
Step 4: Determine the share of profit for Attama and Wawa using the profit-sharing ratio of 4:3.
To do this, we first calculate the total of the profit-sharing ratio:
4 + 3 = 7
Then, we determine Attama's share of the profit:
Attama's share = (4/7) x D21,000 = D12,000
Therefore, Attama's share of the profit is D12,000.
Answer: D12,000
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