Anuj and Alka are partners in a firm. Their capital accounts as on April 01, 2025 showed a balance of Rs. 4,00,000 and Rs. 6,00,000 respectively. On July 01, 2025, Anuj introduced additional capital of Rs. 50,000 and Alka, Rs. 60,000. On October 01, Anuj withdrew Rs. 30,000 and on January 01, 2026 Alka withdrew Rs. 15,000 from their capitals. Interest on capital is allowed @ 8% p.a. What will be the interest payable to Anuj during the financial year 2025-2026?

Rs. 33,800

Correct answer: Option (4) → Rs. 33,800

Concept: Interest on capital on the time basis when capital is introduced and withdrawn during the year, per Accounting for Partnership: Basic Concepts.

Interest @ 8% p.a. is charged on each balance for the period it is maintained:
Opening capital 4,00,000 for the full year: 4,00,000 × 8% = Rs. 32,000
Additional 50,000 (Jul 1 – Mar 31, 9 months): 50,000 × 8% × 9/12 = Rs. 3,000
Withdrawal 30,000 (Oct 1 – Mar 31, 6 months): 30,000 × 8% × 6/12 = Rs. 1,200 (deducted)
Interest on Anuj’s capital = 32,000 + 3,000 – 1,200 = Rs. 33,800.