Question : Arun and Nipun are partners with the capital of Rs.25,000 and Rs.15,000 respectively. Interest payable on capital is 10% pa. Find the interest on capital for both the partners when the profils earned by the firms is Rs.2,400.
Option 1: Rs.2,500 and Rs.1,500
Option 2: Rs.1,500 and Rs.900
Option 3: Rs.1,200 and Rs.1,200
Option 4: None of these
Correct Answer: Rs.1,500 and Rs.900
Solution :
Interest on Arun's capital = Rs.25,000 X 10% = Rs.2,500
Interest on Nipun's capital = Rs.15,000 X 10% = Rs.1,500
Total appropriations = Rs.2,500 + Rs.1,500 = Rs.4,000
Profits earned = Rs.2,400
Appropriations (Rs.4,000) > Profits earned (Rs.2,400)
Interest on Arun's capital : Interest on Nipun's capital = 2,500 : 1,500 = 5 : 3.
Profits = Rs.2,400 in 5:3
Interest on Arun's capital = Rs.2,400 X 5/8 = Rs.1,500
Interest on Nipun's capital = Rs.2,400 X 3/8 = Rs.900
Hence, the correct option is 2.
