Practicing Success
A, B and C are partners in a firm sharing profits and losses in ratio of 2:2:1. Their capital accounts stood at ₹30000, ₹15000 and ₹15000 respectively at the starting of the business. As per the oral agreement between partners, C was allowed a salary of ₹250 per month and interest on capital to all partners was allowed at the rate of 5 % p.a. Net profit earned for the year is ₹18000 which was distributed between partners equally, ignoring the interest and salary clause. |
What amount of interest on capital was provided to A? |
₹750 ₹1500 ₹3000 ₹850 |
₹1500 |
Interest on capital is 5% p.a. |