To determine Halidu's share of the profit, we need to analyze the profit-sharing arrangement between Halidu and Hamed based on their capital contributions and the salary that Halidu receives. Let's break this down step-by-step.
Step 1: Understand the Capital Contributions
- Halidu's capital: N30,000
- Hamed's capital: N20,000
Step 2: Calculate Total Capital
The total capital contributed by both partners is:
[
\text{Total Capital} = \text{Halidu's Capital} + \text{Hamed's Capital} = N30,000 + N20,000 = N50,000
]
Step 3: Determine Profit Sharing Ratio
The profit-sharing ratio is based on their capital contributions. We can express this ratio as follows:
- Halidu's share of capital:
[
\frac{N30,000}{N50,000} = 0.6
]
- Hamed's share of capital:
[
\frac{N20,000}{N50,000} = 0.4
]
Thus, the profit-sharing ratio is 3:2 (or 60% for Halidu and 40% for Hamed).
Step 4: Calculate Total Profit
The total profit for the year is N12,000, which includes Halidu's salary of N3,000. Therefore, we need to separate Halidu's salary from the total profit to find the profit available for distribution.
Step 5: Calculate Profit Available for Distribution
To find the profit available for distribution among the partners, we subtract Halidu's salary from the total profit:
[
\text{Profit Available for Distribution} = \text{Total Profit} - \text{Halidu's Salary}
]
[
= N12,000 - N3,000 = N9,000
]
Step 6: Distribute the Profit Based on the Profit-Sharing Ratio
Now, we distribute the remaining profit of N9,000 according to the profit-sharing ratio of 3:2.
- Halidu's share of the profit:
[
\text{Halidu's Share} = \text{Profit Available for Distribution} \times \text{Halidu's Share of Ratio}
]
[
= N9,000 \times 0.6 = N5,400
]
Step 7: Calculate Halidu's Total Earnings
Finally, we add Halidu's salary to his share of the profit to find his total earnings for the year:
[
\text{Total Earnings for Halidu} = \text{Halidu's Share of Profit} + \text{Halidu's Salary}
]
[
= N5,400 + N3,000 = N8,400
]
Conclusion
Halidu's share of the profit (excluding his salary) is N5,400. Therefore, the correct answer is
C. N5,400.
Explanation of Other Options
- A. N7,500: This option does not consider the correct distribution of the profit based on the capital contributions and the salary deduction.
- B. N6,000: This option also fails to accurately reflect the profit-sharing ratio and the salary deduction.
- D. N4,500: This option is significantly lower than what Halidu should receive based on the calculations.
Revision Summary
- Halidu and Hamed's profit-sharing is based on their capital contributions (3:2 ratio).
- Total profit of N12,000 includes Halidu's salary of N3,000; thus, the distributable profit is N9,000.
- Halidu's share of the distributable profit is calculated as 60% of N9,000, which equals N5,400.
- Halidu's total earnings include his share of profit plus his salary, totaling N8,400.