Use the following information to answer the question below
Ata. Bubu and Chikum were in partnership sharing profits and losses in proportion to their capital contributions:
Capital Drawings
Ata 40,000 8,000
Bubu 30,000 5000
Chikum 20,000 –
Net profit for the year was 40,500 and the interest on capital was 5% per annum
Bubu’s share of profit is
- N16,000
-
N12,000
- N8,000
- N4,000