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Tea and Cup are into a partnership business. Interests on drawings made by partners are...

Accounts - Principles of Accounts
JAMB 2018

Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January ,2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. What is the interest on the drawings of Tea?

  • A. ₦705
  • B. ₦500
  • C. ₦1000
  • D. ₦10000
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Correct Answer: Option A
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