Sajal and Shraddha started business on 1st April 2013 with Capitals of 5,00,000 and 3,00,000
respectively. On 1st may 2013, Sajal introduced an additional Capital of 1,00,000 and Shraddha withdrew 50,000 from his capital. On 1st October 2013, Sajal withdrew ? 2,00,000 from his capital and Shraddha introduced 2,50,000. Interest on capital is allowed @ 6% p.a. Calculate the interest on Capital for the year ending 31st March 2014.
Answers
Given:
- Sajal and Shraddha started business on 1st April 2013, with capitals Rs 5,00,000 and Rs 3,00,000.
- On 1st May 2013, Sajal introduced an additional capital of Rs 1,00,000 and on 1st October 2013, he withdrew Rs 2,00,000 from his capital.
- On 1st May 2013, Shraddha withdrew Rs 50,000 from her capital and introduced Rs 2,50,000.
- Interest on capital is allowed at 6% p.a.
To find: The interest on capital.
Answer:
Interest on capital of Sajal [April - May] = 5,00,000 × 6/100 × 1/12 = Rs 2,500
After bringing in additional capital, ...
Interest on capital of Sajal [May - September] = (5,00,000 + 1,00,000) × 6/100 × 5/12 = Rs 15,000
After withdrawing from capital, ...
Interest on capital of Sajal [October - March] = (5,00,000 - 2,00,000) × 6/100 × 6/12 = Rs 9,000
∴ Total interest on capital of Sajal = Rs 2,500 + Rs 12,000 + Rs 7,500 = Rs 26,500.
Interest on capital of Shraddha [April - May] = 3,00,000 × 6/100 × 1/12 = Rs 1,500
After withdrawing from capital, ...
Interest on capital of Shraddha [May - September] = (3,00,000 - 50,000) × 6/100 × 5/12 = Rs 6,250
After introducing additional capital, ...
Interest on capital of Shraddha [October - March] = (2,50,000 + 2,50,000) × 6/100 × 6/12 = Rs 15,000
∴ Total interest on capital of Shraddha = Rs 1,500 + Rs 6,250 + Rs 15,000 = Rs 22,750.