"A and B are partners with capital of Rs 10,000 and 5,000 respectively. Loan given by A was of Rs 10,000. There is no partnership deed. A and B expect 10% interest on Capital. Profit before interest on loan, on 31 march 2021 was of Rs 2,000. Divisible Profit would be -"

2,000 1,400 500 (100 )

1,400

"No interest on capital will be allowed in absence of partnership deed. Only 6% interest on loan will be allowed. Thus interest on loan allowable= 2,000 - 10,000*6% = 1,400"