Question

X and Y are two partners in a partnership firm. As per the terms of partnerships deed partners are charged 6% interest on the fresh capital added by them. During the year ending 31st Dec., Y added fresh capital in the firm as per details given below:
31st March Rs. 3000
31st May Rs. 2000
31st Sugust Rs. 2000
30th November Rs. 1000
Calculate the interest on fresh capital added by Y.

• A. Rs. 195
• B. Rs. 175
• C. Rs. 260
• D. Rs, 250

Answer 1

The correct option is D Rs, 250

As per the provisions of indian partnership act, 1932 partner would get interest on his capital only if :

1. Partnership deed or agreement provides for the same, and

2. If there are sufficient profit in a firm

Assuming the second condition for the given question, calculatio of interest on capital for the year from january-december is as follows:

Interest of first contribution = Rs. 3000 * (6/100) * (9/12) = Rs. 135

Interest of second contribution = Rs. 2000 * (6/100) * (7/12) = Rs. 70

Interest of third contribution = Rs. 2000 * (6/100) * (4/12) = Rs. 40

Interest of fourth contribution = Rs. 1000 * (6/100) * (1/12) = Rs. 5

Therefore, total interest = Rs. (135 + 70 + 40 +5) = Rs. 250