Arjun and Bhim were partners in a firm sharing profits in the ratio 3 : 2. On 31st March 2023, their capitals were ₹ 1,29,000 and ₹ 1,08,000, respectively. Divisible Profit for the year ended 31st March 2023 was ₹ 50,000. Interest on capital was also provided @ 10% p.a. in accordance with the partnership deed. Determine interest on Arjun’s Capital for the year ended. 31.03.2023.

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KollegeApply · Accepted Answer

₹ 9,000 Explanation: Particulars Amount (₹) Closing Capital of Arjun 1,20,000 Less: Share of Profit = 50,000 xx $\frac{3}{5}$ 30,000 Closing Capital, including interest on Capital 99,000 Opening Capital = 99,000 xx $\frac{100}{110}$ 90,000 Interest on Capital 9,000

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