Question on: WAEC Accounting - 1992
Use the following information to answer the given question
\(\begin{array}{c|c} & Ade & Okon \ & N & N \ \hline \text{Fixed Capital} & 15,000 & 25,000 \ \text{Salary per annum} & 6,000 & 8,000 \ \text{Interest on capital per annum} & \text{8%} & \text{8%} \ \text{Profit or loss sharing ratio} & \text{40%} & \text{60%}\end{array}\)
The net profit for the year ended 31st December 1990 is N28,000 while drawing are N3,000 and N4,000 for Ade and Okon respectively. What is the interest on capital?
\(\begin{array}{c|c} & Ade & Okon \ & N & N \ \hline \text{Fixed Capital} & 15,000 & 25,000 \ \text{Salary per annum} & 6,000 & 8,000 \ \text{Interest on capital per annum} & \text{8%} & \text{8%} \ \text{Profit or loss sharing ratio} & \text{40%} & \text{60%}\end{array}\)
The net profit for the year ended 31st December 1990 is N28,000 while drawing are N3,000 and N4,000 for Ade and Okon respectively. What is the interest on capital?
A
N6,400
B
N4,000
C
N3,200
D
N2,000
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Correct Option: C
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