Sameer and Yasmin are partners with capitals of ₹15,00,000 and ₹10,00,000 respectively. They agreed to share profits in the ratio of 3:2. The books are closed on March 31, every year. They admit Ravi on October 1, 2019 in the partnership, who bring ₹12,00,000 as capital and Sameer also introduced additional capital ₹3,00,000 on that date. Interest on partner's capital is provided @5% p.a. The amount of interest on the capital of Sameer for the year 2019-20 is-
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹82,500.
Opening capital of Sameer = ₹15,00,000
Interest = 5% p.a.
Interest = 15,00,000 x 5/100
= 75,000
Additional capital of ₹3,00,000 brought on 1st Oct so interest provided for 6 months
Interest = 3,00,000 x 5/100 x 6/12
= 7,500
Total interest = 75,000 + 7,500
= 82,500