Use the following information to answer questions below Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is #150,000 and the interest on capital is 5%. Teteh's share of interest on capital is

Use the following information to answer questions below

Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is #150,000 and the interest on capital is 5%.

Teteh's share of interest on capital is

A #15,000
B #25,000
C #10,000
D #75,000

waec 2022 accounting

The correct answer is A. #15,000

Teteh's share of interest on capital = 5% x 300,000 = 15,000

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