Given: Capital:..G...........₦5 000 ..........T...........₦8 000 Drawings: G...........₦2 000 ..........T..........₦1 000 Interest on capital..10% Interest ...

Given:

Capital:..G...........₦5 000

..........T...........₦8 000

Drawings: G...........₦2 000

..........T..........₦1 000

Interest on capital..10%

Interest on Drawings..5%

Find the interest on drawings of G?

Answer Details

The interest on drawings is the cost or expense incurred by the business when the owner withdraws funds from the business for personal use. The interest on drawings is calculated by multiplying the drawings amount by the rate of interest on drawings. For G, the amount of drawings is ₦2,000 and the rate of interest on drawings is 5%. Therefore, the interest on drawings for G is: Interest on drawings for G = Drawings x Rate of interest on drawings = ₦2,000 x 5% = ₦100 Hence, the interest on drawings for G is ₦100.