Practicing Success
Practicing Success
CUET Preparation Today
| A, B and C are partners in a partnership firm sharing profits and loss in ratio of 2:2:1. Their fixed capitals are ₹1000000, ₹800000 and ₹700000 respectively. They withdrew some amount from the firm for their personal use. Partnership deed provide interest on drawings @10% p.a. but no interest on capital. Market rate of interest on capital in similar firm is 5% p.a. C also gives a loan of ₹100000 to the firm without any agreement of interest whereas market rate of interest on loan is 12% p.a. |
| What will be the interest on B's capital? |
₹40000 ₹4000 ₹80000 zero |
| zero |
| No interest on capital is provided as there is no clause related to it in agreement. |
