Anand and Biswas are partners in a firm. Their Capital Accounts as on April 1, 2015 showed
balance of 2,00,000 and 3,00,000 r

1 thought on “Anand and Biswas are partners in a firm. Their Capital Accounts as on April 1, 2015 showed<br />balance of 2,00,000 and 3,00,000 r”

1. ANSWER :

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   • ❖ The amount of Interest payble in capital of Anand @8% p.a. is Rs. 17,800 and amount of Interest payable on capital of Biswas @8% p.a. is Rs. 27,300.

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   SOLUTION :

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   ❒ Given :-

   • Capital of Anand as on April 1, 2015 = Rs. 2,00,000

   • Capital of Biswas as on April 1, 2015 = Rs. 3,00,000

   • Capital introduced by Anand on July 1, 2015 = Rs. 50,000

   • Capital introduced by Biswas on July 1, 2015 = Rs. 60,000

   • Amount withdrawn by Anand on October 1, 2015 = Rs. 30,000

   • Amount withdrawn by Biswas on January 1, 2016 = Rs. 15,000

   • Rate of Interest on Capital = 8% p.a.

   ❒ To Calculate :-

   • Interest payable on Capital to Anand during the year 2015 – 2016 = ?

   • Interest payble on Capital to Biswas during the year 2015 – 2016 = ?

   ❒ Required Formula :-

   • Interest on Capital in given rate of interest for a specific period of time is calculated under the following formula :

   [tex]\dag \: \: \underline{ \boxed{ \bold{ \: Interest \: \: on \: \: Capital = Amount\: \: of \: \: Capital \times Rate \: \: of \: \: Interest \times Time \: }}}[/tex]

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   ❒ Calculation of Interest payable on Capital to Anand during the year 2015 – 2016 :-

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   Here,

   • Capital of Anand as on April 1, 2015 = Rs. 2,00,000

   • Rate of Interest on Capital = 8% p.a.

   • Time = 3 months (From April 1 to June 30)

   Using the formula of Interest on Capital, we get,

   • ★ Interest on Capital = Amount of Capital × Rate of Interest × Time

   ⇒ Interest on Capital = Rs. 2,00,000 × 8% × 3 months

   ⇒ Interest on Capital = Rs. 2,00,000 × [tex]\sf{\dfrac{8}{100}}[/tex] × [tex]\sf{\dfrac{3}{12}}[/tex]

   ⇒ Interest on Capital = Rs. 4,000

   Again,

   • Capital introduced as additional capital by Anand on July 1, 2015 = Rs. 50,000

   ∴ Total Capital = Rs. 2,00,000 + Rs. 50,000

   ➨ Total Capital = Rs. 2,50,000

   • Rate of Interest on Capital = 8% p.a.

   • Time = 3 months ( From July 1 to September 30)

   Using the formula of Interest on Capital, we get,

   • ★ Interest on Capital = Amount of Capital × Rate of Interest × Time

   ⇒ Interest on Capital = Rs. 2,50,000 × 8% × 3 months

   ⇒ Interest on Capital = Rs. 2,50,000 × [tex]\sf{\dfrac{8}{100}}[/tex] × [tex]\sf{\dfrac{3}{12}}[/tex]

   ⇒ Interest on Capital = Rs. 5,000

   And,

   • Amount withdrawn from Capital by Anand on October 1, 2015 = Rs. 30,000

   ∴ Remaining Capital = Rs. 2,50,000 – Rs. 30,000

   ➨ Remaining Capital = Rs. 2,20,000

   • Rate of Interest on Capital = 8% p.a.

   • Time = 6 months (From October 1 to March 31)

   Using the formula of Interest on Capital, we get,

   • ★ Interest on Capital = Amount of Capital × Rate of Interest × Time

   ⇒ Interest on Capital = Rs. 2,20,000 × 8% × 6 months

   ⇒ Interest on Capital = Rs. 2,20,000 × [tex]\sf{\dfrac{8}{100}}[/tex] × [tex]\sf{\dfrac{6}{12}}[/tex]

   ⇒ Interest on Capital = Rs. 8,800

   Now,

   • ✪ Total Interest on Capital of Anand = Rs. 4,000 + Rs. 5,000 + Rs. 8,800

   ∴ Total Interest on Capital of Anand = Rs. 17,800

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   ❒ Calculation of Interest payable on Capital to Biswas during the year 2015 – 2016 :-

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   Here,

   • Capital of Biswas as on April 1, 2015 = Rs. 3,00,000

   • Rate of Interest on Capital = 8% p.a.

   • Time = 3 months (From April 1 to June 30)

   Using the formula of Interest on Capital, we get,

   • ★ Interest on Capital = Amount of Capital × Rate of Interest × Time

   ⇒ Interest on Capital = Rs. 3,00,000 × 8% × 3 months

   ⇒ Interest on Capital = Rs. 3,00,000 × [tex]\sf{\dfrac{8}{100}}[/tex] × [tex]\sf{\dfrac{3}{12}}[/tex]

   ⇒ Interest on Capital = Rs. 6,000

   Again,

   • Capital introduced as additional capital by Biswas on July 1, 2015 = Rs. 60,000

   ∴ Total Capital = Rs. 3,00,000 + Rs. 60,000

   ➨ Total Capital = Rs. 3,60,000

   • Rate of Interest on Capital = 8% p.a.

   • Time = 6 months ( From July 1 to December 31)

   Using the formula of Interest on Capital, we get,

   • ★ Interest on Capital = Amount of Capital × Rate of Interest × Time

   ⇒ Interest on Capital = Rs. 3,60,000 × 8% × 6 months

   ⇒ Interest on Capital = Rs. 3,60,000 × [tex]\sf{\dfrac{8}{100}}[/tex] × [tex]\sf{\dfrac{6}{12}}[/tex]

   ⇒ Interest on Capital = Rs. 14,400

   And,

   • Amount withdrawn from Capital by Biswas on January 1, 2016 = Rs. 15,000

   ∴ Remaining Capital = Rs. 3,60,000 – Rs. 15,000

   ➨ Remaining Capital = Rs. 3,45,000

   • Rate of Interest on Capital = 8% p.a.

   • Time = 3 months (From January 1 to March 31)

   Using the formula of Interest on Capital, we get,

   • ★ Interest on Capital = Amount of Capital × Rate of Interest × Time

   ⇒ Interest on Capital = Rs. 3,45,000 × 8% × 3 months

   ⇒ Interest on Capital = Rs. 3,45,000 × [tex]\sf{\dfrac{8}{100}}[/tex] × [tex]\sf{\dfrac{3}{12}}[/tex]

   ⇒ Interest on Capital = Rs. 6,900

   Now,

   • ✪ Total Interest on Capital of Biswas = Rs. 6,000 + Rs. 14,400 + Rs. 6,900

   ∴ Total Interest on Capital of Anand = Rs. 27,300

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