Question

A and B are partners sharing profit in the ratio of 3:2 their capital balance on 1st April 2013 where rupees 70,000 and rupees 50000 on 2nd July 2013 A introduction to rupees 30000 B introduced to Rs 10,000 interest on capital is allowed head 10% calculate interest on capital if accounts are closed on 31st March every year

Answer 1

capital at the beginning of the year of A and B is 70000 and 50000 respectively. and the capital remained same for April to June. I.e. 3 months .

intrest on capital for 3 months =

A=70000×10%=7000×3/12=1750.

B=50000×10%=5000×3/12=1250.

later

A's capital = 70000+30000(introduced)=100000.

B's capital = 50000+10000(introduced)=60000.

and this capital is from July to March I.e. 9 months.

so,interest on capital for these 3 months is

A=100000×10%=10000×9/12=7500.

B=60000×10%=6000×9/12=4500.

so their interest from April to March is

A=1750+7500=9250.

B=1250+4500=5750.

hope u understand....

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