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Use the following information to answer the question \(\begin{array}{c|c} Ade Bola\\ ...

Use the following information to answer the question
\(\begin{array}{c|c} & Ade & Bola\\ & N & N \\ \hline \text{Capital Accounts} & 60,000 & 40,000\\ \text{Current Accounts} & 10,000 Cr & 6,000 Cr \\ \text{Drawings} & 8,000 & 2,000 \end{array}\)
Interest on drawings is 5%, interest on capital is 10%. Profit and losses are shared equally. Net profit for the year is N30,000. The total amount credit to the Profit and Loss Appropriation Account is
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  • A N40,500
  • B N30,500
  • C N30,000
  • D N25,000
Correct Answer: Option B
Explanation:

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