Question

A and B are partner, sharing profit in the ratio 3:2. Their capital balance on 1st April 2013 were Rs. 70,000 and Rs. 50,000. , On 2st July 2013 A introduced Rs.30,000 and B introduced Rs. 10,000. Interest on capital is allowed at 10% p.a.
Calculate interest on capital, if accounts are close on 31st march every year.

Answer 1

A 70000 for one year interest @10%per annum is 7000 again introduction 30000 interest on it @10%p.a for nine months is Rs2250

Total interest=9250

B 50000 for one year interest@10%per annum is 5756 again introduction 10000 interest on it @ 10 percentage per annum for 9 month rupees 750

total interest 5750

so a earns rupees 2520 per month and B earns rupees 5750 per month