A & B are partners and sharing profits and losses in ratio of 3:2. Their capitals are ₹ 150000 and ₹200000 respectively on 1st April,2021. Calculate interest on partners' capital if rate of interest is 8% p.a. and firm earned profit of ₹ 21000 during the year?

A = ₹9000 B = ₹12000

Interest on A capital= 150000*8/100 = ₹ 12000
Interest on B capital= 200000*8/100 = ₹16000
Since the total of both partner's interests is more than the profit of the firm (28000 -21000).
Interest will be paid to the extent of available profit i.e., ₹21000 in ratio of interest on capital 12000: 16000 means 3:4
So, A will be credited with ₹9000, and B will be credited with ₹12000.