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A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.
- a)A= ?1,000 and B= ?500
- b)A= ?2,000 and B= ?500
- c)A= ?1,000 and B= ?1500
- d)A= ?1,500 and B=?500
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A and B are partners sharing profit and losses in the ratio of 3:5. On...
Calculation of Interest on loan:
Interest on A’s Loan = 40,000 × 5/100 × 6/12 = 1,000
Interest on B’s Loan = 20,000 × 5/100 × 6/12 = 500
Interest on A’s Loan = 40,000 × 5/100 × 6/12 = 1,000
Interest on B’s Loan = 20,000 × 5/100 × 6/12 = 500
Most Upvoted Answer
A and B are partners sharing profit and losses in the ratio of 3:5. On...
The interest is given on 1july and books are closed on 31dec. So the loan amount is kept by the business for 6months. So the interest is calculated on 6month on the loan amount @5% p.a. Interest on loan for 40000 is 1000Rs. and for 20000 interest of rs.500 is right answer.
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A and B are partners sharing profit and losses in the ratio of 3:5. On...
Calculation of Interest on Loan:
Given:
- A and B are partners sharing profit and losses in the ratio of 3:5.
- On 1st July, 2012, A and B advanced a loan to the business of ?40,000 and ?20,000 respectively.
- The agreed interest rate on the loan is 5% p.a.
- Accounting books are closed on 31st December every year.
- Partnership deed allows interest on the loan to the partners.
To calculate the interest on the loan, we need to consider the following steps:
Step 1: Calculate the time period for which the loan is outstanding:
Since the accounting books are closed on 31st December every year, the loan will be outstanding for a period of 6 months (1st July to 31st December).
Step 2: Calculate the interest for each partner:
- A advanced a loan of ?40,000 with an interest rate of 5% p.a.
- B advanced a loan of ?20,000 with an interest rate of 5% p.a.
Interest for A:
Interest = Principal * Rate * Time
= ?40,000 * 5% * (6/12) (as the loan is outstanding for 6 months)
= ?40,000 * 5% * 0.5
= ?40,000 * 0.025
= ?1,000
Interest for B:
Interest = Principal * Rate * Time
= ?20,000 * 5% * (6/12) (as the loan is outstanding for 6 months)
= ?20,000 * 5% * 0.5
= ?20,000 * 0.025
= ?500
Therefore, the interest on the loan for A is ?1,000 and for B is ?500.
Conclusion:
The correct answer is option 'A': A= ?1,000 and B= ?500.
Given:
- A and B are partners sharing profit and losses in the ratio of 3:5.
- On 1st July, 2012, A and B advanced a loan to the business of ?40,000 and ?20,000 respectively.
- The agreed interest rate on the loan is 5% p.a.
- Accounting books are closed on 31st December every year.
- Partnership deed allows interest on the loan to the partners.
To calculate the interest on the loan, we need to consider the following steps:
Step 1: Calculate the time period for which the loan is outstanding:
Since the accounting books are closed on 31st December every year, the loan will be outstanding for a period of 6 months (1st July to 31st December).
Step 2: Calculate the interest for each partner:
- A advanced a loan of ?40,000 with an interest rate of 5% p.a.
- B advanced a loan of ?20,000 with an interest rate of 5% p.a.
Interest for A:
Interest = Principal * Rate * Time
= ?40,000 * 5% * (6/12) (as the loan is outstanding for 6 months)
= ?40,000 * 5% * 0.5
= ?40,000 * 0.025
= ?1,000
Interest for B:
Interest = Principal * Rate * Time
= ?20,000 * 5% * (6/12) (as the loan is outstanding for 6 months)
= ?20,000 * 5% * 0.5
= ?20,000 * 0.025
= ?500
Therefore, the interest on the loan for A is ?1,000 and for B is ?500.
Conclusion:
The correct answer is option 'A': A= ?1,000 and B= ?500.
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A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer?.
A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer?.
Solutions for A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer?, a detailed solution for A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A and B are partners sharing profit and losses in the ratio of 3:5. On 1st July, 2012 A and B advanced loan to the business of ?40,000 and ?20,000 respectively at the agreed @ 5% p.a. Calculate Interest on loan. When accounting books are closed on 31st December every year and partnership deed allows interest on loan to the partners.a)A= ?1,000 and B= ?500b)A= ?2,000 and B= ?500c)A= ?1,000 and B= ?1500d)A= ?1,500 and B=?500Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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