a and b are partners in a firm there capital a/c shows the balance on april 1 2020 as Rs 500000 and RS 400000 respectively on august 1 2020 they introduced futher capital Rs 100000 and Rs 50000 respectively intrest on capital allowed @ 8 % PA compute interest on capital for the year ending 31 2021
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Explanation:
(as on 1/4/15)
A cap.= 400000
B cap= 300000
(as on 1/8/15)
A cap = 400000+50000=450000
B cap = 300000+40000=340000
(as on 1/3/16)
A cap= 450000
B cap= 340000- 15000= 325000
Int on cap(as on 31/3/16)
A = 400000×6%×4/12=8000
450000×6%×8/12=18000
=26000
B= 300000×6%×4/12=6000
340000×6%×7/12=11900
325000×6%×1/12=1625
= 19525
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