Read the following passage and answer the questions given below.
Ram and Shyam are partners sharing profits in the ratio of 3:2. Their capitals as on 31st March 2022 were ₹500000 and ₹300000 respectively. There is no partnership deed but both partners agreed for the interest on capital @ 5% p.a. and salary to Shyam of ₹25000 annually. On preparing accounts it was found that Interest on capital is omitted and manager's commission was not given which is 5% of the net profit before charging such commission. Profits after Shyam salary was ₹249300.

What is the total interest on the capital of partners?

₹40000

The correct answer is option 4- ₹40000.

Total capital = 5,00,000 + 3,00,000
                 = ₹8,00,000

Interest on capital = 8,00,000 X 5/100
                           = ₹40000