Use the information below to answer this question.
Buhari and Osinbajo are in partnership with the following partnership agreement
Buhari Osinbajo
Capital 40, 000 70, 000
Salary 10, 000 15, 000
Interest on capital 5% 5%
Profit/loss sharing ratio 40 60
The net profit for the year ended is N80,000.
“Drawings are N80, 000 and N12, 000 for Buhari and Osinbajo respectively”
What is Osinbajo share of profit?
A N19, 800
B N49, 500
C N48, 000
D N29, 700
Answer is D
