Test Index

JAMB Accounts Principles of Accounts 2019 Paper

Question : 16

Total: 71

The rate of interest on capital for Ade is

Solution:

Concept:

Interest on capital is calculated by applying the agreed rate to the partner’s capital balance.

Explanation:

Ade’s capital is

6000

The agreed rate of interest is

5\%

Compute:

5\% \times 6000 = \frac{5}{100} \times 6000 = 300

Hence, Ade’s interest on capital is

\text{₦}300

Answer:

300

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