REMYA M MOHAN (STUDENT) (138 Points)
31 October 2011R AND S ARE PARTNERS WITH CAPITAL OF RS 25000 AND RS 15000 RESPECTIVELY .INTEREST PAYABLE ON CAPITAL
IS 10%p.a .FIND INTEREST ON CAPITAL OF BOTH THE PARTNERS WHEN PROFIT EARNED IS2400
OPTIONS a .2500&1500 b 1500&900 c1200&1200 dnone above
answer given b
HOW AND WHY OPTION b ? explain
Sultan Mohiuddin
(Practicing Chartered Accountant)
(56 Points)
Replied 01 November 2011
dats right ,the answer has to be B-1500& 900..since there is not enough profit to pay whole 10% interest...and as the capital ration is 5:3,the same 2400 will be shared in the same ratio,which when calcuated is rs.1500 and 900!!
as simple as that!!
Harshal Fifadra
(Chartered Accountant)
(1489 Points)
Replied 01 November 2011
Very correctly said by Sultan . I agree with him .
CAclubindia
