Question on: WAEC Accounting - 2002
Use the following information to answer the given question,
\(\begin{array}{c|c} & Baba & Tude\ & N & N \ \hline \text{Capital Accounts 1 January, 2000} & 40,000 & 50,000\ \text{Current Accounts 1 January, 2000} & 20,000Cr & 15,000Cr \ \text{Drawings during the year} & 4,000 & 15,000\ Salaries & 5,000 & 5,000\end{array}\)
Interest on capital is 10%, the net profit for the year is N40,000. The interest on Tunde's capital is
\(\begin{array}{c|c} & Baba & Tude\ & N & N \ \hline \text{Capital Accounts 1 January, 2000} & 40,000 & 50,000\ \text{Current Accounts 1 January, 2000} & 20,000Cr & 15,000Cr \ \text{Drawings during the year} & 4,000 & 15,000\ Salaries & 5,000 & 5,000\end{array}\)
Interest on capital is 10%, the net profit for the year is N40,000. The interest on Tunde's capital is
A
N10,000
B
N5,000
C
N4,000
D
N1,500
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Correct Option: B
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