question_answer

After preparing the accounts, it was found that interest on capital @ 10% p.a. was not provided. Following information was provided by Gagan and Shubh on 31st March 2021.

Liabilities	Amount	Assets	Amount
Gagan's Capital	52,000	Fixed Assets	4 90,000
Shubh's Capital	34,000	Current Assets	12,000
Creditors	16,000
	1,02,000		1,02,000.

During the year drawings of the partners were Rs. 12,000 and Rs.10,000. Profit during the year was Rs.8,000 which was distributed without providing interest on capital Interest on Gagan and Shubh's Capital will be:

A) Gagan 4,800 and Shubh 3,200 

B) Gagan 6,000 and Shubh 4,000

C) Gagan 5,200 and Shubh 3,400

D) Gagan 5,000 and Shubh 5,000