Keme and Kemi are in partnership sharing profit and losses in the ratio 3:2. Capital - Keme.............?20 000 ........ - Kemi.............?10 000 Drawings...

Keme and Kemi are in partnership sharing profit and losses in the ratio 3:2.

Capital - Keme.............?20 000

........ - Kemi.............?10 000

Drawings - Keme.............?2 000

........ - Kemi.............?3 000

Profit......................?6 000

Interest on capital.........5%

Interest on drawings........10%

Answer Details

To calculate the interest on Keme's drawings, we first need to find Keme's total drawings and capital account balance. Keme's total drawings are ?2,000 and Keme's capital account balance is ?20,000. Then we need to calculate the interest on Keme's drawings, which is calculated at a rate of 10% per annum. The formula for calculating interest on drawings is: Interest on Drawings = Drawings x Rate x Time Since the time period is not given, we assume it to be one year. So, the interest on Keme's drawings would be: Interest on Keme's Drawings = ?2,000 x 10% x 1 = ?200 Therefore, the interest on Keme's drawings is ?200.