From the following information, calculate interest on Capital of C, a partner for the year ended 31st March, 2022.
C's Capital on 31/3/2022: ₹12,00,000
Profit credited to C for the year ended 31/3/2022: ₹3,00,000
Drawings made during the year: ₹1,00,000
Additional Capital introduced on 1/10/21: ₹5,00,000
Rate of Interest = 12 % p.a.

₹90,000

The correct answer is option 3- ₹90,000.

Opening capital = Closing capital + drawings - Profit - additional capital
                         = 12,00,000 + 1,00,000 - 3,00,000 - 5,00,000
                         = 5,00,000

Additional capital = 5,00,000

Interest on opening capital = 5,00,000 X 12/100
                                           = ₹60,000

Interest on additional capital = 5,00,000 X 12/100 X 6/12
                                              = 60,000 X 1/2
                                              = 30,000
Total interest = 60,000 + 30,000
                     = ₹90,000