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Ram and mohan are partners in a business. their capitals at the end of year were ₹24,000 and ₹18,000 respectively. during the year, Ram's and mohan's drawing were ₹4,000 and ₹6,000 respectively. profit (before charging int. on cap.) during the year was ₹16,000. calculate int. on cap. @5% p.a. for the year ended 31st March, 2016?
Most Upvoted Answer
Ram and mohan are partners in a business. their capitals at the end of...
Calculation of Interest on Capital

Given:
Ram's capital = ₹24,000
Mohan's capital = ₹18,000
Ram's drawing = ₹4,000
Mohan's drawing = ₹6,000
Profit before interest on capital = ₹16,000
Interest rate = 5%

Calculation of Partner's Profit Share
Total capital = Ram's capital + Mohan's capital = ₹24,000 + ₹18,000 = ₹42,000
Total drawings = Ram's drawing + Mohan's drawing = ₹4,000 + ₹6,000 = ₹10,000
Profit after charging drawings = Profit before interest - Total drawings
Profit after charging drawings = ₹16,000 - ₹10,000 = ₹6,000
Ram's share of profit = (Ram's capital / Total capital) * Profit after charging drawings
Ram's share of profit = (₹24,000 / ₹42,000) * ₹6,000 = ₹3,429.32
Mohan's share of profit = (Mohan's capital / Total capital) * Profit after charging drawings
Mohan's share of profit = (₹18,000 / ₹42,000) * ₹6,000 = ₹2,570.68

Calculation of Interest on Capital
Interest on Ram's capital = (Ram's capital * Interest rate) = (₹24,000 * 0.05) = ₹1,200
Interest on Mohan's capital = (Mohan's capital * Interest rate) = (₹18,000 * 0.05) = ₹900
Total interest on capital = Interest on Ram's capital + Interest on Mohan's capital
Total interest on capital = ₹1,200 + ₹900 = ₹2,100

Conclusion
The interest on capital for the year ended 31st March, 2016, is ₹2,100.
Community Answer
Ram and mohan are partners in a business. their capitals at the end of...
Ram=24000+4000-8000=20000. 20000*5/100=1000Mohan=18000+6000-8000=16000. 16000*5/100=800The profit 16000 is distributed in equal ratio bcz the ratio in which the profit is to be distributed is not given so.. 16000*1/2=8000(ram)16000*1/2=8000(mohan)
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Ram and mohan are partners in a business. their capitals at the end of year were ₹24,000 and ₹18,000 respectively. during the year, Ram's and mohan's drawing were ₹4,000 and ₹6,000 respectively. profit (before charging int. on cap.) during the year was ₹16,000. calculate int. on cap. @5% p.a. for the year ended 31st March, 2016?
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Ram and mohan are partners in a business. their capitals at the end of year were ₹24,000 and ₹18,000 respectively. during the year, Ram's and mohan's drawing were ₹4,000 and ₹6,000 respectively. profit (before charging int. on cap.) during the year was ₹16,000. calculate int. on cap. @5% p.a. for the year ended 31st March, 2016? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ram and mohan are partners in a business. their capitals at the end of year were ₹24,000 and ₹18,000 respectively. during the year, Ram's and mohan's drawing were ₹4,000 and ₹6,000 respectively. profit (before charging int. on cap.) during the year was ₹16,000. calculate int. on cap. @5% p.a. for the year ended 31st March, 2016? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ram and mohan are partners in a business. their capitals at the end of year were ₹24,000 and ₹18,000 respectively. during the year, Ram's and mohan's drawing were ₹4,000 and ₹6,000 respectively. profit (before charging int. on cap.) during the year was ₹16,000. calculate int. on cap. @5% p.a. for the year ended 31st March, 2016?.
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