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 Sunday | Jun 4 | 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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