A and B are partners sharing Profit and Loss in the ratio of 3 : 2 having Capital Account balances of 50,000/- and 40,000/- on 1st April,2018. A introduced 10,000/- as his additional capital whereas B introduced 1,000/- Interest on capital is allowed to partners @10%p.a.
Calculate interest on capital for the financial year ended 31st March,2019.
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Answer:
Interest on capital
A =Rs. 6000 And B = 4100
Explanation:
total Capital employed by B
50,0000 + 10,000 = Rs. 60,000
total Capital employed by B
= 40,000 + 1,000 = Rs. 41000
Interest On capital
Partner A,
10% of 60,000 = 6,000.
Partner B
10% Of 41,000 = 4,100
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