Net Profit of the firm with A, B and C as partners sharing profits equally had been ₹ 5,00,000. Their capitals had balances of ₹ 2,00,000 each and current accounts had balances of ₹ 50,000 (cr.), ₹ 40,000 (Cr.) and ₹ 30,000 (Dr.) respectively. The Partnership Deed allowed/charged interest on capitals and current account balances @ 10% p.a.
The net Profit of the firm with A, B, and C as partners sharing profits equally had been ₹ 5,00,000. Their capitals had balances of ₹ 2,00,000 each and current accounts had balances of ₹ 50,000 (cr.), ₹ 40,000 (Cr.), and ₹ 30,000 (Dr.) respectively. The Partnership Deed allowed/charged interest on capital and current account balances @ 10% p.a.
1) Interest on capital will be
a) ₹ 20,000 each
b) ₹ 30,000 each
c) ₹ 40,000 each
d) NIL
2) Interest allowed/charged on current account balances will be
a) ₹ 5,000, ₹ 4,000, ₹ 3,000
b) ₹ 5,000, ₹ 4,000, NIL
c) ₹ 5,000, ₹ 4,000, ₹ 3,000 (charged)
d) ₹ 5,000, ₹ 4,000, ₹ 2,000 (charged)
1.
Ans -a)
Explanation:-
Interest on Partner’s Capital = 2,00,000 * 10% = ₹ 20,000
2.
Ans – c)
Explanation:-
Interest on A’s Current A/c = 50,000 * 10% = ₹ 5,000 (Allowed)
Interest on B’s Current A/c = 40,000 * 10% = ₹ 4,000 (Allowed)
Interest on C’s Current A/c = 30,000 * 10% = ₹ 3000 (Charged)
