Sameer and Yasmin are partners with capitals of Rs 15,00,000 and Rs 10,00,000 respectively, sharing profits in

Question

Sameer and Yasmin are partners with capitals of Rs 15,00,000 and Rs 10,00,000 respectively, sharing profits in the ratio of 3:2 . The financial year closes on March 31 every year. They admit Ravi on October 1, 2019. On that same date, Sameer introduces additional capital of Rs 3,00,000 . If interest

Accepted Answer

Let us break down Sameer's capital history over the financial year (April 1, 2019 to March 31, 2020):On Opening Capital: Sameer held

Rs 15, 00, 000

for the full twelve months.

Interest_{1} = 15, 00, 000 \times \frac{5}{100} = Rs 75, 000

On Additional Capital: Sameer brought in

Rs 3, 00, 000

on October 1, 2019. It remained in the firm for exactly 6 months (October to March).

Interest_{2} = 3, 00, 000 \times \frac{5}{100} \times \frac{6}{12} = 15, 000 \times \frac{1}{2} = Rs 7, 500

Total Interest on Capital for Sameer:

Total Interest = Interest_{1} + Interest_{2} = 75, 000 + 7, 500 = Rs 82, 500

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