Question

X and Y are partners and they had 40,000 and 60,000 in their respective capital accounts as on 1st January, 2019. X paid in further 5,000 on 1st August, 2019 and another 5,000 on 15th November, 2019.Compute the interest on capital to be allowed to X assuming the rate of interest to be 6% per annum. Ans-: ₹2,562.50.

Answer 1

The answer is Rs. 2562.50.

From 1st Jan to 1st Aug (7 months):

Interest on Capital = 40,000 × $\frac{6}{100}$ × $\frac{7}{12}$ = Rs. 1,400

From 1st Aug to 15th Nov (3.5 months):

Interest on Capital = 45,000× $\frac{6}{100}$ × $\frac{3.5}{12}$ = Rs. 787.50

From 1st Aug to 15th Nov (1.5 months):

Interest on Capital = 50,000× $\frac{6}{100}$ × $\frac{1.5}{12}$ = Rs.375

Total Interest on Capital = 1,400 + 787.50 + 375 = Rs. 2562.50