M and R are partners sharing profits and losses in the ratio of . Their capital A/c's showed the balance of Rs. and Rs. respectively on 1 April, 2021. M introduced additional capital on 1 August, 2021. Interest on capital is allowed @ p.a. Total interest on capital of both the partners is Rs. .Calculate additional capital introduced by M on 1 August, 2021 and interest on capital earned on additional capital. Books are closed on 31 March.
- ARs. and Rs.
- BRs. and Rs.
- CRs. and Rs.
- DRs. and Rs.
Solution & Step-by-step Explanation
Interest on R's Capital = of Rs. .Total interest = Rs. .Interest on M's total Capital = Rs. .Interest on M's opening capital for the full year = of Rs. .Interest on M's additional capital = Rs. .Let M's additional capital be .It was introduced on 1 August, so it was used for 8 months (Aug-Mar). Rs. .Additional capital = Rs. ; Interest on it = Rs. .