Saloni and Srishti are partners in a firm. Their capital accounts as on April 01, 2019 showed a balance of and respectively. On July 01, 2019 Saloni introduced additional capital of and Srishti, . On October 01, 2019 Saloni withdrew , and on January 01, 2020 Srishti withdrew from their capitals. Interest is allowed @ p.a. Calculate interest payable on capital to Saloni during the financial year 2019–2020.
- A\text{Rs. } 8,800
- B\text{Rs. } 17,800
- C\text{Rs. } 14,400
- D\text{Rs. } 20,800
Solution & Step-by-step Explanation
Let's trace the changing capital timeline for Saloni to calculate her interest on capital step-by-step:From April 01, 2019 to June 30, 2019 ( months):Capital balance = $
3 \text{Rs. } 50,000 2,00,000 + 50,000 = \text{Rs. } 2,50,000
$\text{Interest} = 2,50,000 \times \frac{8}{100} \times \frac{3}{12} = \text{Rs. } 5,000
From October 01, 2019 to March 31, 2020 ( months):Capital withdrawn = New Capital balance = $
$
3 \text{Rs. } 50,000 2,00,000 + 50,000 = \text{Rs. } 2,50,000
$\text{Interest} = 2,50,000 \times \frac{8}{100} \times \frac{3}{12} = \text{Rs. } 5,000
From October 01, 2019 to March 31, 2020 ( months):Capital withdrawn = New Capital balance = $
$