Anu and Shikha are partners sharing profits and losses in the ratio of 3:2. Their capital accounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively on April 01, 2024. The partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of Rs. 21,000 during the year. Show the calculation of interest on capital for the year ending March 31, 2025, by which Anu and Shikha would be:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Credited with Rs. 9,000 and Rs. 12,000 respectively
Interest on capital is allowed only out of profit. When the profit is less than the interest due, the whole profit goes as interest, and it is shared in the ratio of the interest due, not in the profit sharing ratio.
Interest due to Anu = 8% of Rs. 1,50,000 = Rs. 12,000
Interest due to Shikha = 8% of Rs. 2,00,000 = Rs. 16,000
Total interest due = Rs. 28,000, more than the profit of Rs. 21,000
Ratio of interest = 12,000 : 16,000 = 3 : 4
Anu = Rs. 21,000 × 3/7 = Rs. 9,000
Shikha = Rs. 21,000 × 4/7 = Rs. 12,000
Nothing is left after the interest, so the 3 : 2 ratio is not used. Sharing the Rs. 21,000 in 3 : 2 (Rs. 12,600 and Rs. 8,400) is the common slip here.
Note: NTA picked this question from an NCERT (2026-27) illustration and changed the figures. Do not ignore NCERT while practising numericals.
NCERT (2026-27 edition):
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