Residual Profit Sharing After Interest Adjustments Steps:

• Calculate total interest on capital: $3000 +$2500 = $5500.
• Subtract from total profit: $80,000 -$5500 = $74,500 (note: question likely intends$80,000 based on options).
• Add total interest on drawings: $500 +$1000 = $1500; residual profit =$74,500 + $1500 =$76,000.
• Share residual in 3:1 ratio: Dele (3/4 × $76,000) =$57,000; Iyabo (1/4 × $76,000) =$19,000.

Why A is correct:

• Matches formula for residual profit: total profit minus total interest on capital plus total interest on drawings, then divided by profit-sharing ratio (3:1).

Why the others are wrong:

• B: Ignores interest on drawings addition, understates residual by $1500.
• C: Misapplies ratio to unadjusted profit after capital interest only.
• D: Uses profit after capital interest without drawings adjustment or ratio.

Final answer: A