Question

Vishu and Himanshu are partners in a firm. From the following Balance sheet and information given, calculate interest on capitals @ 6% p.a. for the year, ending 31st March, 2026:

Liabilities	₹	Assets	₹
Vishu's Capital A/c	1,50,000	Cash in Hand	12,000
Himanshu's Capital A/с	1,20,000	Other Assets	2,76,000
P & L Appropriation A/c - 2025-26	45,000	Drawings: Vishu	27,000
	3,15,000		3,15,000

During the year ending 31st March, 2026, Vishu's drawings were ₹ 27,000 and Himanshu's drawings ₹ 18,000. Profit earned by the firm during 2025-26 was ₹ 87,000.

Answer 1

1. Distributed Profit

Profit Distributed = 87,000 − 45,000 = 42,000

Share per Partner (1 : 1) = `(42,000)/2 = 21,000`

2. Opening Capital

Vishu: 1,50,000 (Closing Capital) −  21,000 (Profit) = 1,29,000

Himanshu: 1,20,000 (Closing Capital) + 18,000 (Drawings) − 21,000 (Profit) = 1,17,000

3. Interest on Capital (@ 6% p.a.)

Vishu: `1,29,000 xx 6/100 = 7,740`

Himanshu: `1,17,000 xx 6/100 = 7,020`