Question

2. K, P and H share profits in a partnership firm in
the ratio of 5:3:2 with fixed capitals of 40,000;
30,000 and 10,000 respectively. Partners are
entitled to interest on their capitals @10% p.a.
During the year, the firm earned a profit of 6,000.
Find the amount of interest on capital payable to
K, P and H respectively.​

Answer 1

Answer:

interest on capitals

K 4000

P 3000

H 1000

Answer 2

Answer:

K=3000

P=2250

H=750

Explanation:

K's IOC=40,000* 10/100 =4000

P's IOC=30,000*10/100 =3000

H's IOC=10,000*10/100 =1000

4000:3000:1000= 4:3:1

PROFIT=6000

K's IOC=6000×4/8

P's IOC=6000×3/8

H's IOC=6000×1/8