question_answer

Answer the following question from the above information 74 to 78:

A and B are partners. Their Capitals on 1st April, 2020 capitals of Rs.5,00,000 and Rs.3,00,000 respectively. On August 1, 2020 they introduced further capitals of Rs.50,000 and Rs.40,000 respectively. B withdrew Rs.15,000 from his capital on March 1, 2021. The profit for the year ended 31st March 2021 was Rs.4,00,000 before allowing interest on partner's loan.

According to partnership agreement:

(i) A has given a Loan of Rs.1,50,000 to the firm on 1st July, 2020.

(ii) Interest on capital to be allowed @ 12% p.a.

(iii) Interest on drawings @ 6% p.a. Drawings were A Rs.60,000 and B Rs.40,000.

(iv) B is to be allowed a Commission (Charge) of 2% on sales. Sales for the year were Rs.30,00,000.

(v) Profit is to be distributed in the following manner

(a) Upto 1,00,000: Equally.

(b) Above 1,00,000: in the ratio of 3:2

Interest on capital of B will be:

A) 64,500 

B) 64,000

C) 39,050

D) 38,050