Question

Ansh and Abhi are partners sharing profits and losses in the ratio of 3 : 2. Their capital accounts showed balances of Rs. 3,00,000 and Rs. 4,00,000 respectively on April 01, 2024. Calculate interest on Ansh's Capital for the year ending March 31, 2025, if the partnership deed provides for interest on capital @ 8% p.a. and the firm earned a profit of Rs. 14,000 during the year.

• A. Rs. 24,000
• B. Rs. 16,000
• C. Rs. 6,000
• D. Rs. 3,000

Hint:

Profit is only Rs 14,000, so share it between the partners in the ratio of interest due (24,000 : 32,000).

Answer 1

The Correct Option is C

Step 1: Idea:
Interest can never be more than the profit available. So I first find the fraction of the full interest that the profit can cover.

Step 2: Full interest for both:
Ansh needs Rs 24,000 and Abhi needs Rs 32,000. Together they need Rs 56,000.

Step 3: Fraction that can be paid:
\[ \frac{14000}{56000} = \frac{1}{4} \] Only one quarter of every partner's interest can be paid.

Step 4: Apply to Ansh:
\[ 24000 \times \frac{1}{4} = 6000 \]

Step 5: Verify:
Abhi gets $32000 \times \frac{1}{4} = 8000$. Total = 6000 + 8000 = 14000, equal to the profit. So nothing is left over and nothing is overpaid.

Final Answer:
\[ \boxed{\text{Rs } 6{,}000} \]