Read the following passage and answer the question.
A, B and C are partners in a partnership firm sharing profits and loss in ratio of 2:2:1. Their fixed capitals are ₹10,00,000, ₹8,00,000 and ₹7,00,000 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 ₹1,00,000 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 loan of C?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹6,000.
No agreement is there.
So interest will be given @ 6% p.a.
= 1,00,000 X 6/100
= ₹6,000