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Question
Aman and Bahadur are partners in a firm, and share profits and losses in the ratio of 2 : 3. The following was the balance sheet of the firm as on 31st March 2021.
Additional infornation:
The profit of ₹60,000 for the year ended 31st March 2021 was divided between the partners without allowing interest on capital at 10% p.a. and salary to Aman at ₹6,000 per quarter. During the year, Aman withdrew ₹20,000 and Bahadur withdrew ₹40,000.
Calculate the interest on capital for Aman and Bahadur.
[0.88 marks]
Aman and Bahadur are partners in a firm, and share profits and losses in the ratio of 2 : 3. The following was the balance sheet of the firm as on 31st March 2021.
Additional infornation:
The profit of ₹60,000 for the year ended 31st March 2021 was divided between the partners without allowing interest on capital at 10% p.a. and salary to Aman at ₹6,000 per quarter. During the year, Aman withdrew ₹20,000 and Bahadur withdrew ₹40,000.
Calculate the interest on capital for Aman and Bahadur.
[0.88 marks]
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Solution
The correct option is A Aman - ₹11,600; Bahadur - ₹4,400
Interest on capital is calculated on opening capital.
Interest on Capital = Opening Capital x Rate
A = ₹1,16,000 × (10/100) = ₹11,600
B = ₹44,000 × (10/100) = ₹4,400
Interest on capital is calculated on opening capital.
Interest on Capital = Opening Capital x Rate
A = ₹1,16,000 × (10/100) = ₹11,600
B = ₹44,000 × (10/100) = ₹4,400
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