Question

Ramesh and Naresh are parthners in a firm their capitals as n April 2018 Were Rs. 2,50,000 and Rs. 1,50,000 Repectively , they share profits equally O 1st july 2018 they decided that their capitals should be Rs. 2,00,000 each the necesary adhusment in the capitals were made that their capitals ahould be Rs. 2,00,000 each , the necessary adjustment in the capiitals were made by introducing or withdrawing capital interest n capitals is allowed @ 8% p.a cpmpute interest on capital for both the partners for the year ended 31st ended March 2019.

Answer 1

Given:

• Ramesh and Naresh are partners in a firm with capitals Rs 2,50,000 and Rs 1,50,000 respectively.
• On 1st July, 2018, it was decided that their capitals should be Rs 2,00,000 each. This was done by way of withdrawals or addtitions.
• Interest on capital is to be charged at 8% p.a.

To find: The total interest on drawings for both partners.

Answer:

Calculation of interest on capital for Ramesh:

Interest on capital = Capital × (Rate ÷ 100) × (Number of months ÷ 12)

From April to June, his capital was Rs 2,50,000.

• Interest [1st April - 30th June] = Rs 2,50,000 × (8 ÷ 100) × (3 ÷ 12) = Rs 5,000

From July to March, his capital was Rs 2,00,000.

• Interest [1st July - 31st March] = Rs 2,00,000 × (8 ÷ 100) × (9 ÷ 12) = Rs 12,000

Total interest on capital = Rs 5,000 + Rs 12,000 = Rs 17,000

Calculation of interest on capital for Naresh:

Interest on capital = Capital × (Rate ÷ 100) × (Number of months ÷ 12)

From April to June, his capital was Rs 1,50,000.

• Interest [1st April - 30th June] = Rs 1,50,000 × (8 ÷ 100) × (3 ÷ 12) = Rs 3,000

From July to March, his capital was Rs 2,00,000.

• Interest [1st July - 31st March] = Rs 2,00,000 × (8 ÷ 12) × (9 ÷ 12) = Rs 12,000

Total interest on capital = Rs 3,000 + Rs 12,000 = Rs 15,000

Therefore, the total interests on capitals for Ramesh and Naresh for the year ended 31st March are Rs 17,000 and Rs 15,000.