Amitabh and Babul are partners sharing profits in the ratio of 3:2, with capitals of ₹50,000 and ₹30,000 respectively. Interest on capital is agreed @ 6% p.a. Amitabh has also given a Loan on April 01, 2024 of ₹50,000 to the firm without any agreement. Calculate Interest on Amitabh's Loan assuming books are closing on 31st March, 2025.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹3,000.
Loan amount = 50,000
No agreement means interest will be provided @ 6% p.a.
Interest = 50,000 x 6/100
= 3,000