Question

Ridhima and Kavita were partners, sharing profits and losses in the ratio of 3 : 2. Their fixed capitals were ₹ 1,50,000 and ₹ 2,00,000, respectively. The partnership deed provides for interest on capital @ 8% p.a. The net profit of the firm for the year ended 31^st March, 2023, amounted to ₹ 21,000. The amount of interest on capital credited to the current accounts of Ridhima and Kavita will be ______.

विकल्प

• ₹ 12,000 and ₹ 16,000 respectively.

• ₹ 10,500 and ₹ 10,500 respectively.

• ₹ 9,000 and ₹ 12,000 respectively.

• No Interest will be allowed.

Answer 1

Ridhima and Kavita were partners, sharing profits and losses in the ratio of 3 : 2. Their fixed capitals were ₹ 1,50,000 and ₹ 2,00,000, respectively. The partnership deed provides for interest on capital @ 8% p.a. The net profit of the firm for the year ended 31^st March, 2023, amounted to ₹ 21,000. The amount of interest on capital credited to the current accounts of Ridhima and Kavita will be ₹ 9,000 and ₹ 12,000, respectively.

Explanation:

When profits are not sufficient, then available profits are credited in the ratio of appropriation to partner’s capital/current A/c.

Hence, interest on capital is to be credited.

Ridhima = `21,000 xx 3/7`

= ₹ 9,000

Kavita = `21,000 xx 4/7`

= ₹ 12,000