Question

4. Sita and Gita are partners in a firm. Balances of their capital accounts as on 1st April, 2018
were as follows: Sita Rs. 40,000. Gita R$ 30,000. Sita introduced Rs. 5,000 as an additional
capital on 1" October 2018 and Gita introduced Rs.7.500 as additional capital on
1" November, 2018. Sita drew capital amounting to Rs. 7,500 on 1" January 2019 and Gita
withdrew capital amounting Rs. 2,500 on 1 February, 2019. They have further agreed to allow
interest on capital 12% per annum. Books of the accounts of the firm are to be closed on
31" March 2010
Calculate interest to be allowed on partner's capital​

Answer 1

Answer:

ins on capital

Sita

1st april to 30 sep.

40000×12/100×6/12= 2400

1st Oct. to 31st dec.

45000×12/100×3/12=1350

1st jan to 31st mar.

37500×12/100/3/12=1125

total interest= 4875

Gita

1st apr to 31st Oct.

30000×12/100×7/12= 2100

1st nov. to 31st jan.

37500×12/100/3/12=1125

1st feb. to 31st mar

35000× 12/100×2/12=700

total interest= 3925