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JAMB Principles of Accounts 2024 Question 35

Question 35

Partnership Accounts

Use the information below to answer questions 35 and 36.
Kola and Kade are in partnership sharing profit and losses in the ratio 3:2
Capital – Kola ₦20,000
Capital – Kade ₦10,000
Drawings – Kola ₦2,000
Drawings – Kade ₦3,000
Profit ₦6,000
Interest on capital 5%
Interest on drawing 10%
The interest on Kade's capital is

  1. A.₦1000
  2. B.₦500
  3. C.₦2000
  4. D.₦3000
Show the answer and explanation

Answer: B (₦500)

Explanation

Interest on capital = 5% × ₦10,000 = ₦500.