Interest on Partner's Capital Calculation

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Questions and Answers

What is the interest on capital for Girish for the year ending March 31, 2019?

20,000

29,500

31,200 (correct)

36,000

How much total capital did X, Y, and Z contribute on July 1, 2020?

2,30,000 (correct)

2,10,000

2,80,000

2,50,000

What was Barun's interest on capital for the year ending March 31, 2016?

27,000

29,400

34,000

31,200 (correct)

What amount did Y withdraw from his capital on February 1, 2021?

15,000 Signup and view all the answers

What was the total interest on capital received by Amit for the year ended March 31, 2022?

1,08,000 Signup and view all the answers

For the year ending March 31, 2020, what was the interest on capital for partner A?

26,000 Signup and view all the answers

What interest rate is applied to partners' capital in the calculations provided?

8% p.a. Signup and view all the answers

What was the total capital for Arun and Barun after their adjustment on October 1, 2015?

10,00,000 Signup and view all the answers

What is the total interest chargeable from a partner who made multiple withdrawals totaling Rs 15,000 during the specified year?

Rs 1,075 Signup and view all the answers

How much interest on drawings would a partner incur if they withdrew Rs 10,000 at the end of each month?

Rs 9,000 Signup and view all the answers

Which withdrawal timing results in the least interest on drawings for the amount of Rs 60,000 withdrawn each quarter?

End of each quarter Signup and view all the answers

If partner A withdrew Rs 4,000 at the beginning of every month for six months, how much interest would be charged on the total drawings?

Rs 350 Signup and view all the answers

What would be the total interest on drawings for Rakesh if he withdrew Rs 2,500 every month for a year?

Rs 1,500 Signup and view all the answers

If Siddhant withdrew Rs 90,000 in the middle of each quarter, how much interest is charged on the total for the year?

Rs 18,000 Signup and view all the answers

What is the correct interest on drawings for partner B who withdrew Rs 4,000 at the end of each month for six months?

Rs 250 Signup and view all the answers

If a partner withdraws a total of Rs 30,000 during the year, what would be the interest calculated at 10% per annum?

Rs 1,500 Signup and view all the answers

Study Notes

Calculation of Interest on Partner's Capital

Partners Girish and Satish had capital balances of ₹5,60,000 and ₹4,75,000 on April 1, 2018, respectively.
On August 1, 2018, they adjusted their capitals to ₹5,00,000 each.
Interest on capital is 6% per annum.
Calculate the interest on capital for the year ending March 31, 2019.
The calculated interest for Girish is ₹31,200 and for Satish is ₹29,500.

Calculation of Interest on Partner's Capitals (Example 2)

Partners X, Y, and Z had capitals of ₹5,00,000, ₹4,00,000, and ₹3,00,000, respectively, on April 1, 2020.
Further capital was introduced on July 1, 2020.
Y withdrew ₹15,000 from his capital on February 1, 2021.
Interest on capital is 8% per annum.
Find the interest on capital for the year ending March 31, 2021.
The calculated interest is ₹46,000 for X, ₹36,600 for Y, and ₹27,000 for Z.

Interest on Capital (Example 3)

Arun and Barun, partners sharing profits equally, had capitals of ₹4,80,000 and ₹5,40,000 on April 1, 2015.
On October 1, 2015, they aimed for a total capital of ₹10,00,000, equally contributed by both.
Calculate the interest on capital for the year ending March 31, 2016.
Partnership deed specifies a 6% p.a. interest rate on capital.
Calculated interest on capitals: Arun - ₹29,400; Barun - ₹31,200.

Interest on Capital (Example 4)

Amit and Bramit started a business with ₹15,00,000 and ₹9,00,000 as capital on April 1, 2021.
On October 1, 2021, they adjusted their capitals to ₹12,00,000 each.
Calculate the interest on capital for the year ending March 31, 2022.
Interest on capital is 8% per annum.
The calculated interest is ₹1,08,000 for Amit and ₹84,000 for Bramit.

Interest on Capital (Example 5)

Partners A and B had capital balances of ₹4,00,000 and ₹3,00,000 on April 1, 2019.
They introduced additional capital on August 1, 2019.
B withdrew ₹15,000 on March 1, 2020.
Interest on capital is 6% per annum
Calculate the interest on capital for the year ending March 31, 2020.
Calculated Interest: A - ₹26,000 and B - ₹19,525

Interest on Drawings

Partners are charged interest on drawings at 15% per annum.
The provided data outlines different dates and amounts of drawings for a specific partner.
Calculate the interest chargeable for the year ended March 31, 2022, based on the given drawing amounts.

A partner withdraws ₹10,000 per month.
Interest on drawings is 15% p.a.
Calculate interest if drawings are made regularly at the beginning, middle, or end of the month.
Interest calculations based on various drawing scenarios (Case 1, Case 2, Case 3).

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Description

This quiz focuses on calculating the interest on capital for partners in a partnership firm. It includes several examples with varying capital balances and interest rates to enhance understanding. Test your skills in sophisticated financial computations and partnership accounting.