Accounting JAMB

The interest on Keme’s drawings is calculated as?

Keme and Kemi are in partnership sharing profit and losses in the ratio 3:2.

Capital – Keme………….N20 000
…….. – Kemi………….N10 000
Drawings – Keme………….N2 000
…….. – Kemi………….N3 000
Profit………………….N6 000
Interest on capital………5%
Interest on drawings……..10%

 

A. N200
B. N150
C. N300
D. N100

Correct Answer:

Option A – N200

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