question_answer

P and Q are partners. Their capitals balance on 1st April 2020 are as follows: P Rs.3.00,000 Credit balance and Q (50,000) Debit balance. Q introduced Rs.2,50,000 additional capital on 1st October 2020. Interest on capital is allowed @ 8% p.a. Interest on Q's capital will be:

A) Nil, due to his negative capital

B) 4,000

C) 10,000

D) 8,000