Sheela and Leela are partners in a firm. On 1st January 2018 the balance of their Capital accounts were * 4,00,000 and * 3,00,000 respectively. On 1st May 2018 they introduced 50,000 and 40,000 respectively. On 1st November, 2018 Leela withdraw 12,000 from his capital. Interest is allowed on capital at 6% per annum calculate the interest on capital for the year ending on 31st December, 2018. [Ans. Interest on Capital : Sheela 26,000 and Leela 19,480] to the capit
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Answers
Given:
- Sheela and Leela are partners in a firm with capitals Rs 4,00,000 and Rs 3,00,000 respectively.
- On 1st May, 2018, they introduced additional capitals Rs 50,000 and Rs 40,000 respectively.
- On 1st November, 2018, Leela withdrew Rs 12,000 from her capital.
- Interest on capital is to be charged at 6% p.a.
To find: The total interests on capitals for the partners.
Answer:
Calculation of Interest on Capital for Sheela:
Interest on capital = Capital × (Rate ÷ 100) × (Number of months ÷ 12)
- Interest [Jan - April] = Rs 4,00,000 × (6 ÷ 100) × (4 ÷ 12) = Rs 8,000
An additional of Rs 50,000 was introduced. Therefore, Sheela's capital is now Rs 4,00,000 + Rs 50,000 = Rs 4,50,000.
- Interest [May - Dec] = Rs 4,50,000 × (6 ÷ 100) × (8 ÷ 12) = Rs 18,000
Total interest on capital = Rs 8,000 + Rs 18,000 = Rs 26,000.
Calculation of Interest on Capital for Leela:
Interest on capital = Capital × (Rate ÷ 100) × (Number of months ÷ 12)
- Interest [Jan - April] = Rs 3,00,000 × (6 ÷ 100) × (4 ÷ 12) = Rs 6,000
An additional of Rs 40,000 was introduced. Therefore, Leela's capital is now Rs 3,00,000 + Rs 40,000.
- Interest [May - Oct] = Rs 3,40,000 × (6 ÷ 100) × (6 ÷ 12) = Rs 10,200
Leela withdrew Rs 12,000. Therefore, her capital is now Rs 3,40,000 - Rs 12,000 = Rs 3,28,000.
- Interest [Nov - Dec] = Rs 3,28,000 × (6 ÷ 100) × (2 ÷ 12) = Rs 3,280
Total interest on capital = Rs 6,000 + Rs 10,200 + Rs 3,280 = Rs 19,480.
Therefore, Sheela's and Leela's interests on capitals are Rs 26,000 and Rs 19,480 respectively.