Saloni and Srishti are partners in a firm. Their capital accounts as on April 01. 2019 showed a balance of ₹2,00,000 and ₹3,00,000 respectively. On July 01, 2019, Saloni introduced additional capital of ₹50,000 and Srishti, ₹60,000. On October 01, 2019 Saloni withdrew ₹30,000, and on January 01, 2020 Srishti withdrew ₹15,000 from their capitals. Interest is allowed @ 8% p.a. Calculate interest payable on capital to Saloni during the financial year 2019- 2020.
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹17,800.
Interest rate = 8% p.a.
Saloni opening capital (1st April) = 2,00,000
Interest from 1st April to 30 Sept i.e. 6 months
Interest = 2,00,000 x 8/100 x 6/12
= 8,000
Additional capital (1st July) = 50,000
Interest from 1st July to 30 Sept i.e. 3 months
Interest = 50,000 x 8/100 x 3/12
= 1,000
Withdrew 30,000 on October 01, 2019. So, new capital on this date = 2,20,000 (2,00,000 + 50,000 - 30,000).
Interest from 1st Oct to 31 March i.e. 6 months
Interest = 2,20,000 x 8/100 x 6/12
= 8,800
Total interest = 8,000 + 1,000 + 8,800
= 17,800