manu and kanu were partners in a firm, sharing profits and losses in the ratio of 2:3. their fixed capitals were ₹10,00,000and ₹5,00,000 respectively. they were entitled to an interest on capital @10%p.a. the firm earned a profit of ₹60,000 during the year. the amount of interest on capital credited to kanu will be:
₹20,000
₹40,000
₹36,000
₹24,000ī
Answers
Answer:
36'000
Explanation:
amount of interest on capital credited to kanu will be:
= 60,000 × 3/5
= 36,000
Given:
Manu and Kanu were partners in a firm, sharing profits and losses in the ratio of 2:3. their fixed capitals were ₹10,00,000and ₹5,00,000 respectively. they were entitled to interest on capital @10%p.a. the firm earned a profit of ₹60,000 during the year.
To Find:
the amount of interest on capital credited to Kanu will be:
₹20,000
₹40,000
₹36,000
₹24,000
Solution:
First computing the interest on capital, which is as follows
Manu=1000000*10%
=100000
Kanu=500000*10%
=50000
Therefore total interest on capital is 150000. Since the firm earned a profit of 60000 only, it is obvious that it cannot provide interest on capital as computed above.
In such a case, the entire profit of 60000 shall be distributed between Manu and Kanu in their profit sharing ratio.
Computation of amount of interest to be credited to Kanu will be,
=60000*3/5
=40000
Computation of amount of interest to be credited to Manu will be,
=60000*2/5
=20000
Hence, the correct option is (b)40000.