Question 34 of 50beginner🔧 ApplyNumerical3 marks

Rahul, Rohit and Karan started partnership business on April 1, 2019 with capitals of Rs. 20,00,000, Rs. 18,00,000 and Rs. 16,00,000, respectively. The profit for the year ended March 2020 amounted to Rs.1,35,000 and the partner’s drawings had been Rahul Rs. 50,000, Rohit Rs. 50,000 and Karan Rs. 40,000. The profits are distributed among partner’s in the ratio of 3:2:1. Calculate the interest on capital @ 5% p.a.

Correct Answer

Interest on Rahul's Capital: Rs. 1,00,000 Interest on Rohit's Capital: Rs. 90,000 Interest on Karan's Capital: Rs. 80,000

Exercise: Numerical Questions | Q: 14 | (Page 40)
For More Understanding

Explanation

The question requires calculating interest on capital based on the opening capital balances provided. The context provides the answer key confirming the calculations: Rahul Rs. 1,00,000, Rohit Rs. 90,000, and Karan Rs. 80,000. The calculation is straightforward: Opening Capital multiplied by the interest rate (5%). The information regarding profit (Rs. 1,35,000) and drawings is not required for the specific calculation of interest on capital, as the interest is calculated on the fixed opening capitals unless otherwise specified.

Solution Steps

  1. Step 1: Calculate Interest on Rahul's Capital. Interest = Capital Amount × Rate/100 = Rs. 20,00,000×5000 \times 5/100 = Rs. 1,00,000

  2. Step 2: Calculate Interest on Rohit's Capital. Interest = Capital Amount × Rate/100 = Rs. 18,00,000×5000 \times 5/100 = Rs. 90,000

  3. Step 3: Calculate Interest on Karan's Capital. Interest = Capital Amount × Rate/100 = Rs. 16,00,000×5000 \times 5/100 = Rs. 80,000

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