Question 1 Report
Use the information below to answer question 38 and 39.Dan and Baker are in partnership with capital of ₦50,000 and ₦30,000 each. The partnership agreement provides that:(i) profits be shared in the ratio of capital. (ii) Baker be paid a salary of ₦8,000.
(iii) both partners earn interest on capital at 6% p.a.
(iv) both partners pay interest on drawing at 6% p.a.
At the end of the year, Dan drew ₦15,000 while Baker drew ₦14,000 in four installment on 31/3,30/6,30/9 and 31/12. The net profit for the year was ₦48,000. ₦5,000 is to be written off the Goodwill account.What is the interest on the drawing by Baker?