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Tea and Cup are into a partnership business. Interests on drawings made by partners are...


Question

Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January , 2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. what is the closing balance in Tea’s current account

Options

A) 36,925Cr

B) 40,000Cr

C) 50,000Dr

D) 36,295Dr

The correct answer is A.


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