WAEC Financial Accounting 2010 Question 35

Use the following information to answer questions 33 to 35.
Aba and Baba are partners who agreed to share profits and losses in the ratio 4 : 3 respectively. Extracts from their books for the year ended 31/12/08 are: (Aba / Baba / Total)
Capital: ¢20,000 / ¢15,000 / ¢35,000
Drawings: ¢2,520 / – / ¢2,520
Interest on drawings: ¢504 / – / ¢504
Interest on capital: ¢2,000 / ¢1,500 / ¢3,500
Net profit 31/12/08: total ¢34,636

The rate of interest on capital is

1. A.15%
2. B.10%
3. C.8%
4. D.5%