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Question -

Rahul, Rohit and Karan started partnership business on April 1, 2016 with capitals of ₹ 20, 00,000, ₹ 18, 00,000 and ₹ 16, 00,000, respectively. The profit for the year ended March 2017 amounted to ₹ 1, 35,000 and the partner’s drawings had been Rahul ₹ 50,000, Rohit ₹ 50,000 and Karan ₹ 40,000. The profits are distributed among partners in the ratio of 3:2:1. Calculate the interest on capital @ 5% p.a.

14. Sunflower and Pink Rose started partnership business on April 01, 2016 with capitals of ₹ 2, 50,000 and ₹ 1, 50,000, respectively. On October 01, 2016, they decided that their capitals should be ₹ 2, 00,000 each. The necessary adjustments in the capitals are made by introducing or withdrawing cash. Interest on capital is to be allowed @ 10% p.a. Calculate interest on capital as on March 31, 2017.



Answer -

Product Method

 Sunflower

01 April 2016 to 30 September 2016

2,50,000 × 6 =

15,00,000

01 October 2016 to 31 March 2017

2,00,000 × 6 =

12,00,000

 

Sum of Product

27,00,000

 

Pink Rose

01 April 2016 to 30 September 2016

1,50,000 × 6 =

9,00,000

01 October 2016 to 31 March 2017

2,00,000 × 6 =

12,00,000

 

Sum of Product

21,00,000

Alternative Method:

Simple Interest Method

Sunflower

April 01, 2016 to September 30, 2016

2,50,000 ×

10

×

6

=

 

₹ 12,500

 

100

12

 

October 01,  2016 to March 31, 2017

2,00,000 ×

10

×

6

=

 

₹ 10,000

 

100

12

 

Interest on Sunflower’s Capital

₹ 22,500

Pink Rose

April 01, 2016 to September 30, 2016

1,50,000 ×

10

×

6

=

 

₹   7,500

 

100

12

 

October 01,  2016 to March 31, 2017

2,00,000 ×

10

×

6

=

 

₹ 10,000

 

100

12

 

Interest on Pink Rose’s Capital

₹ 17,500

 

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