Alex and Lucy are partners in a business.
Alex receives an annual salary of £5,000 from the partnership and the balance of profits and losses is shared between Alex and Lucy in the ratio of 3 : 2 respectively.
In the last financial year, the net profit was £30,000.
How much was credited to each partner for the year?
Select ONE answer:
- Alex £10,000 and Lucy £15,000
- Alex £12,000 and Lucy £18,000
- Alex £20,000 and Lucy £10,000
- Alex £21,000 and Lucy £14,000
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct- £30k – £5k = £25k / 5 = £5K per share, therefore Alex receives £5k * 3 + £5k salary
- Not correct
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