The deed provides interest on capital but available profit is only Rs 18000 and interest claim is Rs 24000. How much interest is generally allowed?

Correct answer: Rs 18000

Interest on capital is normally an appropriation of profit, not an ordinary business expense. It can be allowed only out of the profit available for appropriation. When the available profit is Rs 18000 but the total interest claim is Rs 24000, the firm cannot distribute more than Rs 18000 as interest under the usual school-level rule.

Thus, the amount generally allowed is Rs 18000, which is option A. The remaining Rs 6000 is not paid because sufficient profit is unavailable. This conclusion assumes that the question refers to a single claim or to the usual proportionate-limit rule in which the available profit is the maximum distributable amount. The answer does not mean that the deed’s full claim disappears in every possible partnership arrangement.