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X and Y are partners in a firm sharing profit 3:2 On 1-1-2021 their capital were 100000 and 150000 respectively. On 31-3-2021they decided that a total capital of firm should be 300000 to be shared in their profit ratio .they withdrew their capital in cash . Calculate their interest on capital on 31st December 2021 @10% p.a?
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X and Y are partners in a firm sharing profit 3:2 On 1-1-2021 their ca...
Calculation of Interest on Capital for X and Y


Given Information:


  • X and Y are partners in a firm sharing profit 3:2

  • On 1-1-2021 their capital were 100000 and 150000 respectively

  • On 31-3-2021 they decided that a total capital of the firm should be 300000 to be shared in their profit ratio

  • They withdrew their capital in cash

  • Interest rate is 10% p.a



Calculation of Profit Sharing Ratio:


Total capital after the decision of X and Y = 300000

X's new capital = 100000 - (3/5)*(100000+150000-300000) = 40000

Y's new capital = 150000 - (2/5)*(100000+150000-300000) = 110000

Profit sharing ratio of X and Y = 3:2

Calculation of Interest on Capital:


Interest on X's capital = 40000 * 10% = 4000

Interest on Y's capital = 110000 * 10% = 11000

Final Answer:


The interest on capital for X and Y on 31st December 2021 is Rs. 4000 and Rs. 11000 respectively.
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X and Y are partners in a firm sharing profit 3:2 On 1-1-2021 their capital were 100000 and 150000 respectively. On 31-3-2021they decided that a total capital of firm should be 300000 to be shared in their profit ratio .they withdrew their capital in cash . Calculate their interest on capital on 31st December 2021 @10% p.a?
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