Calculate interest on the capital of partner Amrita if the opening capital is ₹100000 and the rate of interest is 10% p.a. Amrita brought ₹50000 on 1 August 2022 and withdrew ₹20000 on 1st November. Accounts are closed on 31st March, 2023.

₹12500

The correct answer is option 2- ₹12500.

Rate of interest is 10% p.a.
Opening Capital is ₹100000.
Interest on opening capital for 7 months upto 1st Nov = 100000 x 10/100 x 7/12
                                                                              = ₹5833.33

Additional Capital is ₹50000  which is brought on 1 Aug.
Interest on additional Capital = 50000 x 10/100 x 3/12
                                           = ₹1250

Capital on 1st Nov is after withdrawal of ₹20000.
 = 100000 + 50000 -20000
 = 130000
Interest on whole capital of ₹130000 from 1st Nov to 31st March.
= 130000 X 10/100 X 5/12
= 5416.66

So the total interest on capital = 5833.33 + 1250 + 5416.66
                                            = ₹12499.99 or 12500