Question on: JAMB Accounting - 2023
Dairo and Segun are in partnership sharing profits and losses in the ratio 2:3 respectively. The information below relates to their business for the year ended 31st December, 2018.
|
Drawings: |
₦ |
| Dairo | 12000 |
| Segun | 18000 |
| Capital | |
| Dairo | 120000 |
| Segun | 60000 |
- Interest on drawings 10%
- Interest on capital 5%
- Profit for the year ₦36,000
- Salary: Segun ₦10,000
The interest on Dairo\'s drawings is
A
₦1,600
B
₦1,200
C
₦1,400
D
₦1,800
Ask EduPadi AI for a detailed answer
Correct Option: B
To calculate the interest on Dairo's drawings, we can use the formula:
Interest on Drawings = Drawings × (Rate of Interest/100)
In this case, Dairo's drawings are ₦12,000, and the rate of interest is 10%.
Interest on Dairo's Drawings = ₦12,000 × (10/100) = ₦1,200
So, the interest on Dairo's drawings is ₦1,200
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