WAEC Financial Accounting 1992 Question 46

Ade and Okon are in partnership with the following partnership agreement:
Fixed Capital: Ade ₦15,000; Okon ₦25,000
Salary per annum: Ade ₦6,000; Okon ₦8,000
Interest on capital per annum: Ade 8%; Okon 8%
Profit or loss sharing ratio: Ade 40%; Okon 60%
The net profit for the year ended 31st December 1990 is ₦28,000 while drawings are ₦3,000 and ₦4,000 for Ade and Okon respectively.

What is the interest on capital?

1. A.₦6,400
2. B.₦4,000
3. C.₦3,200
4. D.₦2,000
5. E.₦1,200.