Interest on capital is 10%. The net profit for the year is N60,000. The balance on Ibinabo’s current account on 31st December, 1992 is?

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Halima

N

 Ibinabo

N
Capital accounts 1st Jan, 1992 100,000 50,000
Current accounts 1st Jan, 1992 20,000 40,000
Drawing during the year 10,000 15,000
Annual salaries 14,000 12,000

 

A. N66,500
B. N53,500
C. N51,500
D. N43,500

Correct Answer:

Option C – N51,500

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