question_answer

Jolly and Monty started a business in partnership on 1st August 2020. They introduced capital Rs.4,50,000 and Rs.3,75,000 respectively. On 1st October 2020 Monty introduced Rs.25,000 additional capital. Interest on capital provided as per the partnership deed at the end of the year 31st March 2021, Jolly Rs.27,000 and Monty Rs.23,625. What was the rate of interest on capital?

A) 6% p.a.

B) 8% p.a.

C) 9% p.a.

D) 12% p.a.