Question

A and B are partners in a firm sharing profits in the ratio of 3 : 2. They had advanced to the firm a sum of ₹ 30,000 as a loan in their profit-sharing ratio on 1st October, 2017. The Partnership Deed is silent on interest on loans from partners. Compute interest payable by the firm to the partners, assuming the firm closes its books every year on 31st March.

Answer 1

Interest is calculated below.

Explanation:

Total amount given by the partners =  Rs. 30,000

The ratio of profit sharing = 3:2

So, we need to calculate advance from each of A and B.

$A = 30,000 \times \frac{3}{5} = Rs. 18,000\\\\B = 30,000 \times \frac{2}{5} = Rs. 12,000$

Interest Period = 6 months as given in the question

(Oct’ 2017 to Mar’ 2018) = 6 months

Interest will be calculated as (amount will be taken as per the ratio of profit for A and B, we calculated above):

Rate of interest given is 6% per annum on the loans

Calculation of Interest payable by the firm to the partners:

$A= 18,000 \times \frac{6}{100} \times \frac {6}{12} = Rs.540\\\\B= 12,000 \times \frac {6}{100} \times \frac {6}{12} = Rs.360$

The Interest payable by the firm to the partner A is Rs. 540 and interest payable by the firm to the partner B is Rs. 360.

Answer 2

I have attached the solution. Hope you find it useful!