Question

Read the following text and answer the given question:

A and B are partners having fixed Capitals of ₹ 3,00,000 and ₹ 2,00,000 on 1st April 2023. They are allowed interest on Capitals @ 8% p.a. and are charged interest on drawings @ 10% p.a. During the year, A withdrew ₹ 5,000 per month in the beginning of every month, whereas B withdrew ₹ 15,000 per quarter at the end of every quarter.  The profits for the year ended 31st March, 2024, before the above mentioned adjustments were ₹ 1,34,500.

Interest on Drawings will amount to ______.

Options

• A ₹ 3,250 and B ₹ 2,750

• A ₹ 3,750 and B ₹ 2,250

• A ₹ 3,250 and B ₹ 3,750

• A ₹ 3,250 and B ₹ 2,250

Answer 1

Interest on Drawings will amount to A ₹ 3,250 and B ₹ 2,250.

Explanation:

Interest on Drawing : A : 60,000 × `10/100 xx6.5/10`  = 3,250

                                   B : 60,000 × `10/100 xx 4.5/12` = 2,250

                                                                             = 5,500