Accounting JAMB

He made no drawings during the period. What is the interest on the drawings of Tea?

Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year: 3000 on 31st January, 2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. What is the interest on the drawings of Tea?

A. ₦705
B. ₦500
C. ₦1000
D. ₦10000

Correct Answer:

Option A = ₦705

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