Question

Sara and Tara were partners in a firm. Their capitals as on 1st April, 2023 were ₹ 6,00,000 and ₹ 4,00,000 respectively. On 1st October, 2023, Tara withdrew ₹ 1,00,000 for personal use. According to the partnership deed, interest on capital was allowed @ 8% p.а.

The amount of interest allowed on Tara’s capital for the year ended 31st March, 2024 was:

Options

• ₹ 28,000

• ₹ 30,000

• ₹ 48,000

• ₹ 32,000

Answer 1

₹ 32,000

Explanation:

Interest on Tara’s Capital = `4,00,000 xx 8/100 `

= 4,000 × 8

= ₹ 32,000