Question

A and B are partners sharing Profit and Loss in the ratio 3 : 2 having Capital Account balances of ₹ 50,000 and ₹ 40,000 on 1st April, 2018. On 1st July, 2018, A introduced ₹ 10,000 as his additional capital whereas B introduced only ₹ 1,000. Interest on capital is allowed to partners @ 10% p.a.
Calculate interest on capital for the financial year ended 31st March, 2019.

Answer 1

Calculation of Interest on A’s Capital

Date	Capital	×	Period	=	Product
April 01, 2018 to June 30, 2018	50,000	×	3	=	1,50,000
July 01, 2018 to March 31, 2019	60,000	×	9	=	5,40,000
Sum of Product					6,90,000

Calculation of Interest on B’s Capital

Date	Capital	×	Period	=	Product
April 01, 2018 to June 30, 2018	40,000	×	3	=	1,20,000
July 01, 2018 to March 31, 2019	41,000	×	9	=	3,69,000
Sum of Product					4,89,000