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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.2,00,000 and Rs.1,00,000 respectively. Interest on capitals is allowed @ 8% p.a. Firm earned a profit of Rs.15,000 for the year ended 31st March, 2019. As per partnership agreement, interest on capital is treated a charge on profits. Interest on capital will be:

    A) X Rs.16,000; Y Rs.8,000

    B) X Rs.9000; Y Rs.6,000

    C) X Rs.10,000; Y Rs.5,000 

    D) No interest will be allowed

    Correct Answer: A

    Solution :

    [a] X Rs.16,000; Y Rs.8,000
    Hint: Interest on Capital:
    X = 2,00,000 \[\times \frac{8}{100}\] = Rs.16,000
    Y = 1,00,000  \[\times \frac{8}{100}\]= Rs.8,000
    Note: Interest on capital is treated as a charge therefore fun interest will be provided.
     


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