A and B are partners sharing profits and losses in the ratio of 3 : 1. Their capitals at the end of the financial year 2016-17 were Rs 6,00,000 and Rs 3,00,000. During the year 2016-2017, A's drawings were Rs 80,000 and the drawings of B were Rs 40,000, which had been duly debited to partner's capital accounts. Profit before charging interest on capital for the year was Rs 80,000. The same had also been credited in their profit sharing ratio. B had brought additional capital of Rs 70,000 on October 1, 2016. Calculate interest on capital 12% p.a. for the year 2016-17.

A and B are partners sharing profits and losses in the ratio of 3 : 1.

1.	A and B are partners sharing profits and losses in the ratio of 3 : 1. Their capitals at the end of the financial year 2016-17 were Rs 6,00,000 and Rs 3,00,000. During the year 2016-2017, A's drawings were Rs 80,000 and the drawings of B were Rs 40,000, which had been duly debited to partner's capital accounts. Profit before charging interest on capital for the year was Rs 80,000. The same had also been credited in their profit sharing ratio. B had brought additional capital of Rs 70,000 on October 1, 2016. Calculate interest on capital 12% p.a. for the year 2016-17.
Answer» A and B are partners sharing profits and losses in the ratio of 3 : 1. Their capitals at the end of the financial year 2016-17 were Rs 6,00,000 and Rs 3,00,000. During the year 2016-2017, A's drawings were Rs 80,000 and the drawings of B were Rs 40,000, which had been duly debited to partner's capital accounts. Profit before charging interest on capital for the year was Rs 80,000. The same had also been credited in their profit sharing ratio. B had brought additional capital of Rs 70,000 on October 1, 2016. Calculate interest on capital 12% p.a. for the year 2016-17.

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