A and B are partners in a business. Their capitals at the end of the year were ₹ 6,40,000 and ₹ 4,60,000 respectively. During the year ending 31st March, 2024, A’s drawings and B’s drawings were ₹ 1,20,000 and ₹ 1,40,000 respectively

A and B are partners in a business. Their capitals at the end of the year were ₹ 6,40,000 and ₹ 4,60,000 respectively. During the year ending 31st March, 2024, A’s drawings and B’s drawings were ₹ 1,20,000 and ₹ 1,40,000 respectively. Profits (before charging interest on capital) during the year were ₹ 4,00,000. Calculate interest on capital @ 12% p.a. for the year ending 31st March, 2024.

[Ans. Interest on Capitals: A ₹ 67,200; B ₹ 48,000.]