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