Interest on capital is 10%, the net profit for the year is N40,000. The interest on Tunde’s capital is?

By: |Published on: Jun 5|Categories: Accounting WAEC| 0 comments

Use the following information to answer the given question

Baba

#

 Tunde

#
Capital Accounts 1 January, 2000 40,000 50,000
Current Accounts 1 January, 2000 20,000Cr 15,000Cr
Drawings during the year 4,000 15,000
Salaries 5,000 5,000

A. N10,000
B. N5,000
C. N4,000
D. N1,500

Correct Answer: Option B

B. N5,000

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