Question

Indu and Surekha are partners sharing profits and losses in the ratio of 2 : 1 with Capitals of ₹ 3,00,000 and ₹ 2,00,000.

You are required to answer the following question in the alternative case:

If the partnership deed provides for interest on Capital @ 9% p.a. even if it involves the firm in loss and the profits for the year are ₹ 30,000, then Indu's share of interest on Capital will be ______.

Options

• ₹ 18,000

• ₹ 20,000

• ₹ 27,000

• ₹ 12,000

Answer 1

If the partnership deed provides for interest on Capital @ 9% p.a. even if it involves the firm in loss and the profits for the year are ₹ 30,000, then Indu's share of interest on Capital will be ₹ 27,000.

Explanation:

According to this company's partnership deed, interest on capital will be allowed even if the company experiences a loss.