The rate of interest on capital for Ade is

  • A 250
  • B 200
  • C 300
  • D 400
jamb 2019accounting

The correct answer is C. 300

Interest on drawings:

Ojo = 5% × 1000 = ₦50

Sam = 5% × 2000 = ₦100

Ade = 5% × 900 = ₦45

Interest on Capital:

Ojo = 5% × 5000 = ₦250

Sam = 5% × 4,000 = ₦200

Ade = 5% × 6000 = ₦300

Previous question Next question