Use the information below to answer question 38 and 39.

Dan and Baker are in partnership with capital of N50,000 and N30,000 each. The partnership agreement provides that:(i) profits be shared in the ratio of capital. (ii) Baker be paid a salary of N8,000.

(iii) both partners earn interest on capital at 6% p.a.

(iv) both partners pay interest on drawing at 6% p.a.

At the end of the year, Dan drew N15,000 while Baker drew N14,000 in four installment on 31/3,30/6,30/9 and 31/12. The net profit for the year was N48,000. N5,000 is to be written off the Goodwill account.

What is the interest on the drawing by Baker?

• A N210
• B N315
• C N450
• D N840