Saloni and Srishti are partners. Their capital accounts as on April 01, 2019, showed balances of and respectively. On July 01, 2019, Saloni introduced additional capital of . On October 01, 2019, Saloni withdrew from her capital. Interest is allowed @ p.a. Calculate the interest payable on capital to Saloni during the financial year 2019–2020.
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Solution & Step-by-step Explanation
Let's calculate the interest on capital for Saloni step-by-step based on the time periods her changing capital balances were utilized in the firm:From April 01, 2019 to June 30, 2019 ( months):Capital base = $
3 \text{Rs. } 50,000 \implies \text{New Capital} = 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From October 01, 2019 to March 31, 2020 ( months):Capital withdrawn = $
$
3 \text{Rs. } 50,000 \implies \text{New Capital} = 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From October 01, 2019 to March 31, 2020 ( months):Capital withdrawn = $
$