A, B and C were partners in a firm sharing profits in the ratio of 5:3:2. On March 31, 2025, the balance sheet showed capital balances of Rs. 30,000; Rs. 25,000; and Rs. 15,000 for A, B and C respectively. A died on 1st October 2025. It was agreed between his executors and the remaining partners that interest on capital be provided at 10% p.a. Calculate interest on A's capital.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 1,500
A deceased partner gets interest on his capital from the date of the last balance sheet to the date of death, on the capital shown in that balance sheet.
A’s capital on March 31, 2025 = Rs. 30,000
Period = April 1 to September 30, 2025 = 6 months, that is 6/12
Interest = Rs. 30,000 × 10/100 × 6/12 = Rs. 1,500
The capitals of B and C do not enter this working, and the profit sharing ratio plays no part in interest on capital.
Note: This question is from NCERT (2026-27). NTA sets numerical questions from NCERT too, so do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
|
