Question

A and B are partners sharing profits and losses in the ratio of 3 : 2 having capital of Rs 50,000 and Rs 40,000 on 1-4-2007. On 1st July 2017, A introduced Rs 10,000 as his additional capital whereas B introduced only Rs 1,000. If the interest on capital is allowed to partners at 10% p.a., calculate interest on capital if the financial year closes on 31st March every year.

Answer 1

Interest on capital of $A=50,000\times \frac{10}{100}\times \frac{3}{12}+60,000\times \frac{10}{100}\times \frac{9}{12}=\text{Rs}5,750$

Interest on capital of $B=40,000\times \frac{10}{100}\times \frac{3}{12}+41,000\times \frac{10}{100}\times \frac{9}{12}=\text{Rs}4,075$