wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
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]

A
Aman - ₹11,600; Bahadur - ₹4,400
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B
Aman - ₹6,000; Bahadur - ₹2,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Aman - ₹4,800; Bahadur - ₹200
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
Aman - ₹7,000; Bahadur - ₹4,000
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
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

flag
Suggest Corrections
thumbs-up
0
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Calculating Interest on Capital
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon