Question

Ravi and Kishan are partners sharing profits in the ratio of 3 : 2. Their fixed capitals on 1st April 2023 were ₹ 2,00,000 and ₹ 1,00,000 respectively. The partnership deed provides that: Interest on capital is to be allowed at 6% p.a. and charged on drawings @ 10% p.a. Ravi was to be paid a salary of ₹ 5,000 p.m., whereas Kishan was to get a commission of 4% on sales. It is ascertained that Ravi withdrew ₹ 4,000 at the end of every month and Kishan withdrew ₹ 12,000 at the end of every quarter. Sales for the year ended 31st March 2024 amounted to ₹ 3,00,000. The net profit of the firm before making the above adjustments was ₹ 56,000.

Interest on drawings will amount to:

Options

• Ravi ₹ 2,600 and Kishan ₹ 1,800

• Ravi ₹ 2,600 and Kishan ₹ 3,000

• Ravi ₹ 2,200 and Kishan ₹ 1,800

• Ravi ₹ 2,200 and Kishan ₹ 3,000

Answer 1

Ravi ₹ 2,200 and Kishan ₹ 1,800

Explanation:

Total Ravi’s Drawing = 4,000 × 12

= ₹ 48,000

Interest on Ravi’s Drawings = `48,000 xx 10/100 xx 5.5/12`

= ₹ 2,200

Total Kishan’s Drawing = 12,000 × 4

= ₹ 48,000

Interest on Kishan’s Drawings = `48,000 xx 10/100 xx 4.5/12`

= ₹ 1,800