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The deed provides 8% interest on capital. Profit is only ₹36000. Capitals of A and B are ₹300000 and ₹200000 respectively. There is no other appropriation. How much interest will B receive?

Answer and explanation

Correct answer: ₹14400

Interest due is A ₹24000 and B ₹16000. When profit is insufficient available ₹36000 is divided in that ratio.

Related tags

PartnershipInterest On CapitalInsufficient ProfitAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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