Test Index

JAMB Accounts Principles of Accounts 2011 Paper

Question : 38

Total: 49

The interest on Keme's drawings is calculated as?

Solution:

Concept:

Interest on drawings is calculated by applying the agreed interest rate to the amount of drawings.

Explanation:

For Keme, if drawings were N3,000 and the interest rate was 10%, then:

\text{Interest} = 3{,}000 \times \frac{10}{100} = N300

Answer:

N300

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