Question

Rakesh and Neeraj are partners of the firm their capital as on April 1,2013 were rs 2,50,000 and 1,50,000 they share profit equally on July 2013 they decided that their capital should be 2,00,000 each the necessary adjustment in the capital were made by introducing or withdrawing cash interest on capital is allowed at 8% per annum compute interest on capital for both the partners for the year ending on March 31,2014​

Answer 1

Answer:

For Rakesh:-

2,50,000×8/100×3/12 = 5,000

2,00,000×8/100×9/12 = 12,000

= ₹ 17,000 IOC for Rakesh

For Neeraj:-

1,50,000×8/100×3/12 = 3,000

2,00,000×8/100×9/12 = 12,000

= 15,000 IOC for Neeraj