Question

24. Abhirami and Athira are partners in the ratio of 3:2. Their capitals are 32,00,000 and *1,00,000 respectively. Interest on capitals is allowed @8% p.a. Firm earned a profit of 360,000 for the year ended 31st March 2019. Interest on capital will be: (a) Abhirami 16,000; Athira 38000 (b) Abhirami 9,000; Athira 6,000 (C) Abhirami 310,000; Athira 35,000 (d) No interest will be allowed
Please show the workings and explaination Thanks

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Answer 1

Answer:

The 8% p.a. has no profit in interest

option (d) No interest will be not allowed

this is the right answer

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