M and R are partners sharing profits and losses in the ratio of 3 : 2. Their capital A/c's showed the balance of Rs. 4,00,000 and Rs. 3,00,000 respectively on 1 April, 2021. M introduced additional capital on 1 August, 2021. Interest on capital is allowed @ 6% p.a. Total interest on capital of both the partners is Rs. 50,000.
Calculate additional capital introduced by M on 1 August, 2021 and interest on capital earned on additional capital. Books are closed on 31 March.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 2,00,000 and Rs. 8,000
Interest on capital is worked out for the time each amount stayed in the business. The opening capitals earn interest for the whole year; the additional capital earns it only from 1 August 2021 to 31 March 2022, which is 8 months.
Interest on opening capitals = (Rs. 4,00,000 + Rs. 3,00,000) × 6% = Rs. 42,000
Interest on additional capital = Rs. 50,000 − Rs. 42,000 = Rs. 8,000
Additional capital × 6% × 8/12 = Rs. 8,000
Additional capital = Rs. 8,000 × 100/6 × 12/8 = Rs. 2,00,000
NCERT (2026-27 edition):
|
