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 died on 30 June 2020 on which date his capital is ₹1,00,000, and after doing all adjustments his capital balance will be ₹1,74,000. His share of profit from the closing of last year till his death is ₹7,500. Z's executor is paid ₹14,000 on Ist July 2020 and the balance in 2 equal annual installments starts from 30th June,2021 with interest @ 6%p.a. Accounts are closed on 31st March.

How much interest will be due on 31st March,2021?

₹7,200

The correct answer is option 4- 7,200

Interest will be calculated for 9 months i.e. from 1 july to 31 march on balancing figure of 1,60,000 which comes out to be 7,200.

Z's Executor Account