Question

Vidit and Seema were partners in a firm sharing profits and losses in the
ratio of 3:2. Their capitals were 1,20,000 and * 2,40,000, respectively.
They were entitled to interest on capitals @ 10% p.a. The firm earned a
profit of 18,000 during the year. The interest on Vidit's capital will be:
(A) 12,000
(B)10,800
(C) 7,200
(D) 6,000​

Answer 1

Given:

Profit and Loss sharing ratio = 3:2

Capital of Vidit = Rs. 120,000

Capital of Seema = Rs. 240,000

Interest on Capital = 10% p.a.

Profit during the year = Rs. 18,000

To find:

The interest on Vidit's Capital

Solution:

Profit and Loss sharing ratio = 3:2

Capital of Vidit = Rs. 120,000

Capital of Seema = Rs. 240,000

Interest on Capital = 10% p.a.

Profit during the year = Rs. 18,000

$interest \: on \: capital = 10\% \: of \: capital \:$

VIDIT'S CAPITAL

$interest \: on \: capital \: = 10\% \times 120000$

$interest \: on \: capital = \frac{10}{100} \times 120000$

$interest \: on \: capial = 12000$

Therefore the Interest on Vidit's Capital for the year is Rs. 12000.

The answer is option (A)