Question

X and Y are partners in the ratio of 3: 2. Their capitals are 2,00,000 and 1,00,000 respectively interest on capitals is allowed @ 8% p.a. Firm earned a profit of 60,000 for the year ended 31st March 2019. Interest on Capital will be

Answer 1

Yo!

Here's the answer!✨

Given,

X's capital: 2,00,000

Y's capital: 1,00,000

Interest on capital allowed: 8% pa.

Therefore,

X's interest on capital: 2,00,000×8/100 = 16,000.

Y's interest on capital: 1,00,000×8/100 = 8,000.

Hope it helps! <3

–Neri12.