A, B and C are partners in a firm sharing profits and losses in ratio of 2:2:1. Their capital accounts stood at ₹30000, ₹15000 and ₹15000 respectively at the starting of business. As per the oral agreement between partners, C was allowed salary of ₹250 per month and interest on capitals of all partners was allowed at the rate of 5 % p.a. Net profit earned for the year is ₹18000 which was distributed between partners equally, ignoring the interest and salary clause.

What amount of interest on capital should be credited to C?

₹700 ₹750 ₹1500 ₹650

₹750

C's capital is ₹15000 So, interest on his capital is 15000*5/100 = ₹750