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The rate of interest on capital for Ade is

Accounts - Principles of Accounts
JAMB 2019

The rate of interest on capital for Ade is

  • A. 250
  • B. 200
  • C. 300
  • D. 400
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Correct Answer: Option C
Explanation

Interest on drawings:
Ojo = 5% × 1000 = ₦50
Sam = 5% × 2000 = ₦100
Ade = 5% × 900 = ₦45

Interest on Capital:
Ojo = 5% × 5000 = ₦250
Sam = 5% × 4,000 = ₦200
Ade = 5% × 6000 = ₦300

 


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