divide 18594 between two friends ram and mohan in such away that interest paid by ram at 4% p. a. for 6 years be equal to the interest paid by mohan at 5% for 6 years
Answers
Answered by
4
Answer:
Calculation of Capital balance in the beginning:
Particulars Ram Mohan
Capitals at the end of the year 24000 18000
Less: Profit already credited (8000) (8000)
Add: Drawings already debited 4000 6000
Capital at the beginning of the year 20000 16000
Note: Interest on capital is always calculated on the opening balance of the partner's capital.
Ram's interest on capital= 20000 * 5/100
= 1000
Mohan's interest on capital= 16000 * 5/100
= 800
hope it will help you
Similar questions