Test Index

WAEC Accounting 2011 Paper

Question : 13

Total: 47

Solution:

Concept:

Interest on drawings is charged on the amount withdrawn by a partner at the agreed rate.

Explanation:

Osula’s drawings are ₦5,000.

Interest on drawings is to be charged at 10%.

Therefore, Osula’s interest on drawings is:

10\% \times 5{,}000 = \frac{10}{100} \times 5{,}000 = \text{N}500

Answer:

Osula’s interest on drawings is ₦500, i.e. Option D.

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