Question

P, Q and R are in partnership sharing profits and losses in the ratio of 3:2:1. Their capitals on 1st April, 2014 were P Rs 60,000; Q Rs 30,000; R Rs 15,000. Partners have decided that their capital will carry interest @ 5% p.a. Q further introduces Rs 20,000 on 1st July,2014 and withdrew Rs 5,000 on 1st December, 2014, whereas R introduces Rs 10,000 on 15th May, 2014; Rs 7,000 on 30th September, 2014 and withdrew Rs 15,000 on 1st February, 2015. Work out the interest on capital credited to each capital credited to each partner.

Answer 1

Calculation of interest on capital of

$P=60,000\times \frac{5}{100}Rs3,000$

$Q=30,000\times \frac{5}{100}=\times \frac{3}{12}Rs375$

Additional capital introduced by Q Rs 20,000 which makes his capital to Rs 50,000, hence interest

=$50,000\times \frac{5}{100}\times \frac{5}{12}=Rs1,042$

He withdrew Rs 5,000 on December 1 which reduces his capital to Rs 45,000, hence interest

=$45,000\times \frac{5}{100}\times \frac{4}{12}=Rs750$

Therefore total interest of Q=Rs 375+Rs1,042+Rs 750=Rs 2,167

$R=15,000\times \frac{5}{100}\times \frac{1.5}{12}=Rs93.75$

Additional capital introduced by R Rs 10,000 which makes his capital to Rs 25,000, hence interest

=$25,000\times \frac{5}{100}\times \frac{4.5}{12}=Rs468.75$

He further introduces Rs 7,000 capital which makes his capital to Rs 32,000, hence interest

=$32,000\times \frac{5}{100}\times \frac{4}{12}=Rs533.33$

He withdrew Rs 15,000, on February 1 which reduces his capital to Rs 27,000,hence interest

=$27,000\times \frac{5}{100}\times \frac{2}{12}=Rs225$

Therefore, total interest of R=Rs 93.75+Rs 468.75+Rs 533.33+Rs 225=Rs 1,321