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

Capital - Keme.............N20,000
........ - Kemi.............N10,000
Drawings - Keme.............N2,000
........ - Kemi.............N3,000
Profit......................N6,000
Interest on capital.........5%
Interest on drawings........10%

The interest on Kemi's capital is?

A.

N1,000

B.

N2,000

C.

N500

D.

N3,000

Correct answer is C

No explanation has been provided for this answer.