Use the following information to answer the given question,
(begin{array}{c|c} & Baba & Tude\ & N & N \ hline text{Capital Accounts 1 January, 2000} & 40,000 & 50,000\ text{Current Accounts 1 January, 2000} & 20,000Cr & 15,000Cr \ text{Drawings during the year} & 4,000 & 15,000\ Salaries & 5,000 & 5,000end{array})
Interest on capital is 10%, the net profit for the year is N40,000. The interest on Tunde’s capital is
(begin{array}{c|c} & Baba & Tude\ & N & N \ hline text{Capital Accounts 1 January, 2000} & 40,000 & 50,000\ text{Current Accounts 1 January, 2000} & 20,000Cr & 15,000Cr \ text{Drawings during the year} & 4,000 & 15,000\ Salaries & 5,000 & 5,000end{array})
Interest on capital is 10%, the net profit for the year is N40,000. The interest on Tunde’s capital is
-
A.
N10,000 -
B.
N5,000 -
C.
N4,000 -
D.
N1,500