Vivek, Virat, and Vineet were partners in a firm. Their capital accounts as on April 1, 2019, showed balances of ₹4,00,000, ₹6,00,000, and ₹8,00,000 respectively. On 1st July 2019, Virat introduced additional capital of ₹1,00,000, while Vineet withdrew ₹50,000 from his capital on 31st October 2019. Interest on capital is allowed @ 8% p.a. Calculate the interest on capital to be given to each partner at the end of the financial year (31st March 2020).
- AVivek: ₹32,000; Virat: ₹54,000; Vineet: ₹60,000
- BVivek: ₹32,000; Virat: ₹54,000; Vineet: ₹62,000
- CVivek: ₹32,000; Virat: ₹48,000; Vineet: ₹64,000
- DVivek: ₹30,000; Virat: ₹50,000; Vineet: ₹62,000
Solution & Step-by-step Explanation
Let's calculate the Interest on Capital for each partner step-by-step:1. Vivek: No change in capital throughout the year.
2. Virat: * From 1st April to 30th June (3 months) on ₹6,00,000:
From 1st July to 31st March (9 months) on :
3. Vineet: * From 1st April to 31st October (7 months) on ₹8,00,000:
From 1st November to 31st March (5 months) on :
Matches: Vivek: ₹32,000, Virat: ₹54,000, Vineet: ₹62,000.
2. Virat: * From 1st April to 30th June (3 months) on ₹6,00,000:
From 1st July to 31st March (9 months) on :
3. Vineet: * From 1st April to 31st October (7 months) on ₹8,00,000:
From 1st November to 31st March (5 months) on :
Matches: Vivek: ₹32,000, Virat: ₹54,000, Vineet: ₹62,000.