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WAEC Accounting 2023 Paper

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Question : 8

Total: 50

Use the following information to answer the question

Ant and Bee withdrew GH⊄ 14,000 and GH⊄ 10,000 respectively at 8% per annum from the partnership.

The interest on drawings for Ant is

GH⊄ 800
GH⊄ 1,920
GH⊄ 1,120
GH⊄ 700

Solution:

Concept:

Interest on drawings is calculated by multiplying the amount withdrawn by the given rate of interest for the period.

Explanation:

The question asks only for the interest on Ant's drawings.

Ant withdrew

\text{GH}\not\subset 14{,}000

.

The interest rate is

8\%

per annum.

So, interest on Ant's drawings =

14{,}000 \times \frac{8}{100}

.

This gives

14{,}000 \times 0.08 = 1{,}120

.

Thus, the interest on Ant's drawings is

\text{GH}\not\subset 1{,}120

.

Answer:

C. GH⊄ 1,120

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