Based on following, answer the question.

Mr. A, Mr. B and Mrs. C are friends, graduated from JIM Calcutta with specialisation in finance. They started a financing business as a partnership firm. In a written Partnership Deed they specify that the profit sharing ratio amongst them would be 3 : 2 : 1 and interest of capital would be provided @ 5% p.a. However no specifications were made in partnership deed about the interest on drawings and loans. The capitals contributed by them were 3,00,000, 2,00,000 and 1,00,000 by A, B and C respectively. During the year Mrs. C withdrew 20,000 to meet her family expenses. Looking at insufficient capital Mr. B introduced another 1,00,000 as capital into the firm on 1^st June 2021. The business was expanding and for the same purpose the firm took a loan from Mr. A of 3,00,000 on 1^st October 2021. During the year ended 31 March, 2022 firm earned a profit of 4,00,000 before charging rent of 20,000 p.a. Looking at the competency of Mr. D being a C.A. Mr. B wanted to introduce him in the partnership firm as a partner. The firm started its operation on 1^st April 2021.

How much is B entitled to receive interest on capital?

14,166.7

The correct answer is Option (2) - 14,166.7.

Opening capital = 200000
Interest = 5% p.a.
Interest on opening capital = 200000 x 5/100
                                       = 10000

Mr. B introduced another 1,00,000 as capital into the firm on 1^st June 2021.
Interest on additional capital = 100000 x 5/100 x 10/12
                                          = 4166.66

Total interest = 10000 + 4166.66
                   = 14166.66