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Ayush, Chaman, and Govind were partners since 1st April 2017 and were sharing profits in a 3 : 2 : 1. Govind introduced additional capital of ₹ 2,00,000 and advanced a loan of ₹ 1,00,000 - Accounts

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Question

Ayush, Chaman, and Govind were partners since 1st April 2017 and were sharing profits in a 3 : 2 : 1. However, they did not prepare a partnership deed. You are required to answer the following question for the year ending 31st March, 2024:

Govind introduced additional capital of ₹ 2,00,000 and advanced a loan of ₹ 1,00,000 on 1st October 2023. Interest allowed to Govind will be:

Options

  • ₹ 9,000

  • ₹ 6,000

  • ₹ 3,000

  • Nil

MCQ
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Solution

₹ 3,000

Explanation:

Since there is no partnership deed, interest on loan advanced by a partner is allowed at 6% per annum as per the Partnership Act.

Govind advanced a loan of ₹ 1,00,000 on 1st October 2023.

Period: From 1st October 2023 to 31st March 2024 = 6 months

Interest on loan = ₹ `1,00,000 xx 6/100 xx 6/12`

= ₹ 3,000

Therefore, the interest allowed to Govind is ₹ 3,000.

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Chapter 1: Accounting for Partnership Firms - Fundamentals - CASE BASED MCQs - 6 [Page 1.104]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 1 Accounting for Partnership Firms - Fundamentals
CASE BASED MCQs - 6 | Q (a) | Page 1.104
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