Interest on drawings is 5%, interest on capital is 10%. Profit and losses are shared equally. Net profit for the year is N30,000. The total amount credit to the Profit and Loss Appropriation Account is

By: |Published on: Jun 4|Categories: Accounting WAEC| 0 comments

Use the following information to answer the question

Ade

N

 Bola

N
Capital Accounts 60,000 40,000
Current Accounts 10,000 Cr  6,000 Cr
Drawings 8,000 2,000

 

A. N40,500
B. N30,500
C. N30,000
D. N25,000

Correct Answer: Option B

B. N30,500

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