The interest on Kemi’s capital is?

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. N1 000
B. N2 000
C. N500
D. N3 000

Correct Answer:

Option C – N500