Ant and Bee withdrew GH⊄ 14,000 and GH⊄ 10,000 ...
Use the following information to answer the question
Ant and Bee withdrew GH⊄ 14,000 and GH⊄ 10,000 respectively at 8% per annum from the partnership.
The total interest on drawings to be charged to profit and loss appropriation account is
GH⊄ 1,120
GH⊄ 1,920
GH⊄ 700
GH⊄ 800
Correct answer is B
To calculate the interest on Ant's withdrawal:
Interest on Ant's Drawings = Ant's Withdrawal x Interest Rate
Interest on Ant's Drawings = GH⊄ 14,000 x 8% = GH⊄ 1,120
To calculate the interest on Bee's withdrawal:
Interest on Bee's Drawings = Bee's Withdrawal x Interest Rate
Interest on Bee's Drawings = GH⊄ 10,000 x 8% = GH⊄ 800
Total Interest on Drawings = Interest on Ant's Drawings + Interest on Bee's Drawings
Total Interest on Drawings = GH⊄ 1,120 + GH⊄ 800 = GH⊄ 1,920
Carriage inward expenses of a business is treated in ...
Which of the following is not a real account? ...
Which of the following is the responsibility of a local government? ...
\(\begin{array}{c|c} & ₦\\ \hline \text{Opening stock} & 40,000\\ \text{Purchases} & 1...
\(\begin{array}{c|c} & & ₦ \\ \hline \text{capital accounts:} & Ojo & 40,000 \\ &a...
Capital.....................N? Profit and loss.............N3500 Current assets..............N? C...
A company paid cash in redemption of N10,000 debenture. The accounting entry to record this w...