Read the following passage and answer the question.
X, Y, Z were partners sharing profits and losses in the ratio of 4:3:2. Z retired on 1st July, 2021 on which date the capitals of X, Y, Z after all necessary adjustments stood at ₹75,000, ₹65,000 and ₹45,000 respectively. X & Y continued to carry on the business for 6 months without settling the account of Z. During the period of 6 months ended 31st December, 2021, a profit of ₹50,000 is earned by the firm.
How much interest is paid on the balance amount of the retired partner?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹1,350.
Capital = ₹45,000
Interest will be 6% p.a.
Months will be from Ist July to 31st Dec means 6 months
Interest = 45,000 x 6/100 x 6/12
= ₹1,350