Question

A and B are two partners. They agreed to allow interest on capital @5%per annum. Capital accounts as on 1.4.16 were A₹20, 000 and B₹15, 000.A introduce further capital of ₹5, 000 on 1.10.16 ans B introduced ₹3, 000 on 1.10.16 . Calculate Interest on capital of each partner as 31.3.17.​

Answer 1

Explanation:

A'S IOC

20,000*5/100=1000

5000*5/100*6/12=125

TOTAL= 1125

B'S IOC

15000*5/100=750

3000*5/100*6/12=75

TOTAL=825