Question

Ram and Shyam are partners with a capital of Rs 1,00,000 and Rs 1,60,000 on January 1, 2016 respectively. Ram introduced additional capital of Rs 30,000 on July 1, 2016 and another Rs 20,000 on October 31, 2016. Calculate interest on capital for Ram for Financial Year ending December 2016. The rate of interest is 9% p.a.

• A. Rs 10,650
• B. Rs 10,300
• C. Rs 9,000
• D. None of these

Answer 1

The correct option is A

Rs 10,650

On 1,00,000 for 12 months @ 9% $=1,00,000\times \frac{9}{100}\times \frac{12}{12}=9,000$

On 30,000 for 6 months @ 9% $=30,000\times \frac{9}{100}\times \frac{6}{12}=1,350$

On 20,000 for 2 months @ 9% $=20,000\times \frac{9}{100}\times \frac{2}{12}=300$

Total interest on Ram’s capital = 9,000 + 1,350 + 300 = 10,650