Question

Vidit and Seema were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their capitals were ₹ 1,20,000 and ₹ 2,40,000, respectively. They were entitled to interest on capitals @ 10% p.a. The firm earned a profit of ₹ 18,000 during the year. The interest on Vidit’s capital will be ______.

विकल्प

• ₹ 12,000

• ₹ 10,800

• ₹ 7,200

• ₹ 6,000

Answer 1

Vidit and Seema were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their capitals were ₹ 1,20,000 and ₹ 2,40,000, respectively. They were entitled to interest on capitals @ 10% p.a. The firm earned a profit of ₹ 18,000 during the year. The interest on Vidit’s capital will be ₹ 6,000.

Explanation:

Vidit’s Interest on Capital = `1,20,000 xx 10/100`

= ₹ 12,000

Seema’s Interest on Capital = `2,40,000 xx 10/100`

= ₹ 24,000

Total interest on capital = 12,000 + 24,000 = ₹ 36,000

Profit for the year = ₹ 18,000

Since the available profit (₹ 18,000) is less than the total interest on capital (₹ 36,000), interest on capital will be allowed only up to the available profit and in the ratio of their interest on capital, i.e., 12,000 : 24,000 = 1 : 2.

Vidit’s Interest on Capital = `18,000 xx 1/3`

= ₹ 6,000