Sahil and Sarthak are partners in a firm, and share profits and losses equally. Their capital contribution was ₹1,00,000 and ₹2,00,000, respectively. In addition, Sahil provided a loan of ₹70,000 to the firm. The firm has incurred a loss of ₹50,000 in the current year. Calculate the amount of interest on the loan given to Sahil.

[0.88 marks]

₹4,200

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₹3,000

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₹6,000

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₹10,200

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Solution

The correct option is A ₹4,200
Interest on a loan is charged against profit. In the absence of a partnership deed, it is provided at 6% p.a.
Interest on Loan = ₹ $70, 000 \times \frac{6}{100}$
= ₹4,200

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The correct option is A ₹4,200Interest on a loan is charged against profit. In the absence of a partnership deed, it is provided at 6% p.a. Interest on Loan = ₹70,000×6100 = ₹4,200

The correct option is A ₹4,200
Interest on a loan is charged against profit. In the absence of a partnership deed, it is provided at 6% p.a.
Interest on Loan = ₹ $70, 000 \times \frac{6}{100}$
= ₹4,200