CA Foundation Exam > CA Foundation Questions > Mr. A is a partner in a firm along with Mr. B...
Start Learning for Free
Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital is
- a)Rs. 2,500
- b)Rs. 2,000
- c)Rs. 4,500
- d)None of the above
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Mr. A is a partner in a firm along with Mr. B. Both contributed capita...
The correct answer is c: Rs. 4,500.
Here's a detailed explanation:
- Interest on capital is calculated for the period from 1st July, 2016 to 31st December, 2016, which is a total of 6 months.
- Interest on capital is to be charged at 10% per annum.
Calculating interest on capital for Mr. A:
- Mr. A's capital contribution is Rs. 40,000.
- To calculate interest for 6 months, we need to divide the annual rate (10%) by 2, which gives us 5%.
- Interest for Mr. A = 5% of Rs. 40,000 = (5/100) * 40,000 = Rs. 2,000.
Calculating interest on capital for Mr. B:
- Mr. B's capital contribution is Rs. 50,000.
- Interest for Mr. B = 5% of Rs. 50,000 = (5/100) * 50,000 = Rs. 2,500.
Total interest on capital for both partners:
- Total interest = Interest for Mr. A + Interest for Mr. B
- Total interest = Rs. 2,000 + Rs. 2,500 = Rs. 4,500.
Therefore, the interest on capital for both partners is Rs. 4,500.
Here's a detailed explanation:
- Interest on capital is calculated for the period from 1st July, 2016 to 31st December, 2016, which is a total of 6 months.
- Interest on capital is to be charged at 10% per annum.
Calculating interest on capital for Mr. A:
- Mr. A's capital contribution is Rs. 40,000.
- To calculate interest for 6 months, we need to divide the annual rate (10%) by 2, which gives us 5%.
- Interest for Mr. A = 5% of Rs. 40,000 = (5/100) * 40,000 = Rs. 2,000.
Calculating interest on capital for Mr. B:
- Mr. B's capital contribution is Rs. 50,000.
- Interest for Mr. B = 5% of Rs. 50,000 = (5/100) * 50,000 = Rs. 2,500.
Total interest on capital for both partners:
- Total interest = Interest for Mr. A + Interest for Mr. B
- Total interest = Rs. 2,000 + Rs. 2,500 = Rs. 4,500.
Therefore, the interest on capital for both partners is Rs. 4,500.
Most Upvoted Answer
Mr. A is a partner in a firm along with Mr. B. Both contributed capita...
Calculation of Interest on Capital for Mr. A and Mr. B
Given:
- Capital contribution of Mr. A = Rs. 40,000
- Capital contribution of Mr. B = Rs. 50,000
- Interest on capital rate = 10% p.a.
- Books of account closing date = 31st December, 2016
Step 1: Calculate the interest on capital for Mr. A
Interest on capital for Mr. A = Capital contribution × Interest rate × Time
Time = 6 months (from 1st July, 2016 to 31st December, 2016)
Interest on capital for Mr. A = 40,000 × 10/100 × 6/12 = Rs. 2,000
Step 2: Calculate the interest on capital for Mr. B
Interest on capital for Mr. B = Capital contribution × Interest rate × Time
Time = 6 months (from 1st July, 2016 to 31st December, 2016)
Interest on capital for Mr. B = 50,000 × 10/100 × 6/12 = Rs. 2,500
Step 3: Calculate the total interest on capital for both partners
Total interest on capital = Interest on capital for Mr. A + Interest on capital for Mr. B
Total interest on capital = Rs. 2,000 + Rs. 2,500 = Rs. 4,500
Therefore, the correct answer is option C, Rs. 4,500.
Given:
- Capital contribution of Mr. A = Rs. 40,000
- Capital contribution of Mr. B = Rs. 50,000
- Interest on capital rate = 10% p.a.
- Books of account closing date = 31st December, 2016
Step 1: Calculate the interest on capital for Mr. A
Interest on capital for Mr. A = Capital contribution × Interest rate × Time
Time = 6 months (from 1st July, 2016 to 31st December, 2016)
Interest on capital for Mr. A = 40,000 × 10/100 × 6/12 = Rs. 2,000
Step 2: Calculate the interest on capital for Mr. B
Interest on capital for Mr. B = Capital contribution × Interest rate × Time
Time = 6 months (from 1st July, 2016 to 31st December, 2016)
Interest on capital for Mr. B = 50,000 × 10/100 × 6/12 = Rs. 2,500
Step 3: Calculate the total interest on capital for both partners
Total interest on capital = Interest on capital for Mr. A + Interest on capital for Mr. B
Total interest on capital = Rs. 2,000 + Rs. 2,500 = Rs. 4,500
Therefore, the correct answer is option C, Rs. 4,500.
Free Test
FREE
| Start Free Test |
Community Answer
Mr. A is a partner in a firm along with Mr. B. Both contributed capita...
Kyu kee 10 percent kai hisab sai 50000+40000=90000×10÷100= 9000 9000×6÷12=4500
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?
Question Description
Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer?, a detailed solution for Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? has been provided alongside types of Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Mr. A is a partner in a firm along with Mr. B. Both contributed capitals of Rs. 40,000 and Rs. 50,000 respectively on the 1st of July, 2016. Interest on capital is to be charged @ 10% p.a. Books of account are to be closed on 31st December, 2016. Interest on capital isa)Rs. 2,500b)Rs. 2,000c)Rs. 4,500d)None of the aboveCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup