Question

X and Y are partners in a firm sharing profits equally. Their capitals on 31st

March2014 were Rs.2,40,000 and Rs.1,80,000 respectively. Drawings of the

partners to thedate were Rs.40,000 and Rs.60,000 respectively. Profit for the

year was Rs.1,60,000.

Calculate interest on capital @ 8 % p.a. for the year ended 31st March 2014.​

Answer 1

Explanation:

opening cap = closing cap + drawing - profit

int on cap = opening cap × int / 100

X= 240000+40000-80000= 200000×8/100 =16000

Y= 180000+60000 -80000= 160000×8/100 = 12800