Question

. X and Y are partners in the ratio of 2:3. Their capitals of ₹ 2,50,000 and ₹ 1,80,000 respectively. The interest of capital is allowed @ 10% p.a. Firm earned a profit of ₹ 80,000 for the year ended 31st March 2021. Interest on capital will be: (a) X ₹ 12,500; Y ₹ 9,000 (b) X ₹ 1,00,000; Y ₹ 1,08,000 (c) X ₹ 25,000; Y ₹ 18,000 (d) No interest will be allowed​

Answer 1

Answer:

(c) X ₹ 25,000; Y ₹ 18,000

Explanation:

Interest on capital-

X = $2,50,000$ × $\frac{10}{100}$

  = 25,000

Y = $1,80,000$ × $\frac{10}{100}$

  = 18,000