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Question
| Ananya and Mukti are partners in a firm. On 1st April, 2023 their fixed Capitals were ₹ 6,00,000 and ₹ 4,00,000 respectively. On Ist January, 2024, Ananya granted a loan of ₹ 2,00,000 to the firm. Mukti had allowed the firm to use her property for business for a monthly rent of ₹ 15,000. The partnership deed provides that interest on capital will be allowed @ 8% p.a. and Mukti is to be allowed a salary of ₹ 10,000 per month. The firm earned a profit of ₹ 63,000 for the year ended 31st March 2024 before any of the above adjustment is made. |
Based on the above information you are required to answer the following question:
Interest allowed on Capital will be:
Options
Ananya ₹ 48,000 and Mukti ₹ 32,000
Ananya ₹ 37,800 and Mukti ₹ 25,200
Ananya ₹ 36,000 and Mukti ₹ 24,000
No Interest will be allowed
MCQ
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Solution
No Interest will be allowed.
Explanation:
Due to the company's net loss, interest on capital will not be allowed.
| Dr. | PROFIT AND LOSS ACCOUNT | Cr | |
| Particulars | ₹ | Particulars | ₹ |
| To Interest on Ananya's Loan (On ₹ 2,00,000 @ 6% p.a. for 3 months) |
3,000 | 63,000 | |
| To Rent (₹ 15,000 × 12) | 1,80,000 | 1,20,000 | |
| 1,83,000 | 1,83,000 | ||
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