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12th Class Accountancy Fundamentals of Partnership Question Bank MCQs - Accounting for Partnership Firm : Fundamental

  • question_answer
    X and Y are partners in the ratio of 3 : 2. Their capitals are Rs.20,000 and Rs.10,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of Rs.1,500 for the year ( ended 31st March, 2019. Interest on capital will be:

    A) X Rs.1,600 ; Y Rs.800        

    B) X Rs.900 ; Y Rs.600

    C) X Rs.1,000 ; Y Rs.500

    D) No interest will be allowed

    Correct Answer: C

    Solution :

    [c] X Rs.1,000 ; Y Rs.500
    Hint: Interest on Capital:         (Rs.)
    X\[\Rightarrow \] \[20,000\times \frac{8}{100}\] = Rs.1,600    
    Y\[\Rightarrow\]\[10,000\times \frac{8}{100}\]     = 800                                                       
                                                      2,400
    X’s Interest =  \[\frac{1,600}{2,400}\times 1,500\] = Rs.1,000
    Y’s Interest = \[\frac{800}{2,400}\times 1,500\] = Rs.500
     


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