JAMB - Accounts Principles Of Accounts (2018 - No. 45)
Use the information to answer the questions
Rakiya and joy are in a partnership and agreed that 5% interest per annum is to be charged on drawings. The drawing made by both partners in one year were:
Rakiya, #200 on March 31 and #300 on September 30.
Joy, #100 on April 1 and #240 on July 1.
The interest on Joy’s drawing is___________
#511.25 debit
#500.00 credit
#349.75 debit
#340.00 credit
Explanation
The amount withdrawn by the partners for their personal use out of the firm is known as drawings. Interest are charged on this drawings
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