Use the information below to answer questions 40 and 41.

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%

The interest on Kemi's capital is?

  • A N1 000
  • B N2 000
  • C N500
  • D N3 000

The correct answer is C. N500

No explanation given
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