Anupam and Abhishek are partners. Their capital accounts showed balances of Rs. 1,50,000 and Rs. 2,00,000 respectively on April 01, 2019. Show the interest on capital for the year ending March 31, 2020 allowed, if the partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of Rs. 14,000 during the year:

First, let us calculate the full interest on capital due to each partner:
$$\text{Interest for Anupam}=1,50,000\times \frac{8}{100}=\text{Rs. }12,000$$
$$\text{Interest for Abhishek}=2,00,000\times \frac{8}{100}=\text{Rs. }16,000$$
$$\text{Total Interest Required}=12,000+16,000=\text{Rs. }28,000$$
However, the available profit is only Rs. 14,000. Interest on capital is an appropriation of profit and cannot exceed the available profits unless explicitly stated as a charge against profits.Since profits are insufficient (Rs. 14,000 available vs Rs. 28,000 required), the available profit of Rs. 14,000 will be distributed between Anupam and Abhishek in the ratio of their interest claims:
$$\text{Ratio of Interest}=12,000:16,000=3:4$$
Total interest allowed across both partners equals the total available profit balance:
$$\text{Total Interest Allowed}=\text{Rs. }14,000$$