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JAMB Accounting 2011 Objective — Question 39

Question 39 of 49 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2011 Objective paper, with the correct answer and a full explanation.

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Keme and Kemi are in partnership sharing profit and losses in the ratio 3:2. Capital: Keme #20,000, Kemi #10,000. Drawings: Keme #2,000, Kemi #3,000. Profit #6,000. Interest on capital 5%. Interest on drawings 10%. The interest on Kemi's capital is

  • A. A. #1,000
  • B. B. #2,000
  • C. C. #500Correct
  • D. D. #3,000

Explanation

Interest on Kemi's capital = 5% x #10,000 = #500.

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