JAMB Accounting 2015 Objective — Question 38

Question 38 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.

Dan and Baker are in partnership with capital of ₦50,000 and ₦30,000 respectively. Baker drew ₦14,000 in four equal instalments on 31/3, 30/9, and 31/12, with interest on drawings at 6% p.a. What is the interest on the drawing by Baker?

A. ₦210
B. ₦315Correct
C. ₦450
D. ₦840

Explanation

Calculating the time-weighted interest on each of Baker's four instalments at 6% p.a. gives a total interest on drawings of ₦315.

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