Saloni and Shrishti are partners sharing profits and losses in the ratio of 2:3 with capitals of ₹ 20,000 and ₹ 10,000 respectively. The partnership deed provides for interest on capital @ 6% p.a. and the profit for the year was ₹ 1,500. State giving reason, how much interest on capital will be allowed.
Saloni and Shrishti are partners sharing profits and losses in the ratio of 2:3 with capitals of ₹ 20,000 and ₹ 10,000 respectively. The partnership deed provides for interest on capital @ 6% p.a. and the profit for the year was ₹ 1,500. State giving reason, how much interest on capital will be allowed.
Anurag Pathak Changed status to publish April 9, 2023
Answer:-
Interest on Saloni’s Capital = ₹ 20,000 * 6/100 = ₹ 1,200
Interest on Shrishti’s Capital = ₹ 10,000 * 6/100 = ₹ 600
Since the amount of available profit ₹ 1,500 is less than the total amount of interest on capital ₹ 1,800 (₹ 1,200 + ₹ 600), the available profit will be distributed in the ratio of interest claim of Saloni and Shrishti, i.e., ₹ 1,200: ₹ 600, i.e., 2 : 1.
Interest on Saloni’s Capital = ₹ 1,500 * 2/3 = ₹ 1,000
Interest on Shrishti’s Capital = ₹ 1,500 * 1/3 = ₹ 500
Anurag Pathak Changed status to publish April 9, 2023
