Use the following information to answer the given question
(begin{array}{c|c} & Ade & Okon \ & N & N \ hline text{Fixed Capital} & 15,000 & 25,000 \ text{Salary per annum} & 6,000 & 8,000 \ text{Interest on capital per annum} & text{8%} & text{8%} \ text{Profit or loss sharing ratio} & text{40%} & text{60%}end{array})
The net profit for the year ended 31st December 1990 is N28,000 while drawing are N3,000 and N4,000 for Ade and Okon respectively. What is the interest on capital?
(begin{array}{c|c} & Ade & Okon \ & N & N \ hline text{Fixed Capital} & 15,000 & 25,000 \ text{Salary per annum} & 6,000 & 8,000 \ text{Interest on capital per annum} & text{8%} & text{8%} \ text{Profit or loss sharing ratio} & text{40%} & text{60%}end{array})
The net profit for the year ended 31st December 1990 is N28,000 while drawing are N3,000 and N4,000 for Ade and Okon respectively. What is the interest on capital?
-
A.
N6,400 -
B.
N4,000 -
C.
N3,200 -
D.
N2,000 -
E.
N1,2000