Read the following passage and answer the following question.
A, B and C are partners in a firm sharing profits and losses in ratio of 2:2:1. Their capital accounts stood at ₹30,000, ₹15,000 and ₹15,000 respectively at the starting of business on 1st April,2021. As per the oral agreement between partners, C was allowed salary of ₹250 per month and interest on capitals of all partners was allowed at the rate of 5% p.a. Net profit earned for the year is ₹18,000 which was distributed between partners equally, ignoring the interest and salary clause.
What amount of interest on capital was provided to A?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹1,500.
Interest on capital is 5% p.a.
A's capital is ₹30,000.
So interest = 30,000*5/100
= ₹1,500