Use the following information to answer the given question, Aba and Baba are partners who agreed to share profits and losses in the ratio 4 : 3 respectively. Extracts from their books for the year ended 31/12/08 are:

\(\begin{array}{c|c} & \text{ABA} & \text{BABA} & \text{TOTAL}\\ & ₦ & ₦ & ₦ \\ \hline \text{Capital} & 20,000 & 15,000 & 35,000 \\ \text{Drawings} & 2,520 & - & 2,520 \\ \text{Interest on drawings} & 504 & - & 504\\ \text{Interest on capital} & 2,000 & 1,500 & 3,500 \\ \text{Net profit 31/12/08} & - & - & 34,636\end{array}\)

Aba's share of profit is

 

A.

₦21,504

B.

₦19,792

C.

₦18,352

D.

₦16,128

Correct answer is B

Share of profit = \(\frac{4}{4 + 3}\) = \{\frac{4}{7}\)  = 0.5714

0.5714 x 34636 = 19,792