JAMB Principles of Accounts 1998 Question 39

Use the information below to answer questions 38 and 39.
Dan & Baker are in partnership with capitals of ₦50,000 and ₦30,000 each. The partnership agreement provides that: (i) profits be shared in the ratio of capital (ii) Baker be paid a salary of ₦8,000 (iii) both partners earn interest on capital at 6% p.a. (iv) both partners pay interest on drawings at 6% p.a. At the end of the year, Dan drew ₦15,000 while Baker drew ₦14,000 in four instalments on 31/3, 30/6, 30/9 and 31/12. The net profit for the year was ₦48,000. ₦5,000 is to be written off the Goodwill account.
Determine the total interest on capital due to the partners

1. A.₦1200
2. B.₦1800
3. C.₦3000
4. D.₦4800.