Rajesh and Dev are partners in a firm. Their capitals as on 1.4.19 were 4,00,000 and ? 2,00,000
respectively sharing profits equally.
On 1.10.19, they dedded that their capial should be 3,00,000 each. Necessary adjustments in capitals
were made by withdrawing or by introducing cash. Interest on capital is allowed at 10% per annum
Compute Interest on Capital for both the Partners for the year ended on 31.3 .20.
Answers
Answer:
Rajesh-35000
Dev-25000
Step-by-step explanation:
(i) Interest on rajesh's capital:
From 1.4.19 to 30.9.19 (4,00,000 × 10/100 × 6/12)
=20,000
From 1.10.19 to 31.3.20 (3,00,000 × 10/100 × 6/12)
=15,000
--------------
=35,000
(i) Interest on Dev's capital:
From 1.4.19 to 30.9.19 (2,00,000 × 10/100 × 6/12)
=10,000
From 1.10.19 to 31.3.20 (3,00,000 × 10/100 × 6/12)
=15,000
--------------
=25,000