Question

$A$ and $B$ started business on 1st April, 2017 with capitals of $Rs.6,00,000$ and $Rs.4,00,000$ respectively During the year, A introduced $Rs.1,00,000$ to the firm as additional capital on 1st October, 2017. They withdrew $Rs.50,000$ per month for household expenses against profits. Interest on capital is to be allowed @ $10\%$ per annum. Calculate interest payable to $A$ and $B$ for the year ended 31st March, 2018.

Answer 1

Interest on A's Capital:	Rs.
Interest on $Rs.6,00,000$ for one year: $(Rs.6,00,000\times \frac{10}{100})$ Interest on $Rs.1,00,000$ for 6 months: $(Rs.1,00,000\times \frac{6}{12}\times \frac{10}{100})$ (from 1st October, 2017 to 31st March, 2018)	60,000 5,000
	65,000

Interest on B's Capital:
Interest on $Rs.4,00,000$ for one year $Rs.4,00,000\times \frac{10}{100}$ $Rs.40,000$