Question : Rohan and Mohan are two friends belonging middle-class family. On 1st April, 2020 they started a business of Tyre manufacturing in the form of a partnership firm without any agreement and contributed Rs.4,00,000 and Rs.2,00.000 respectively as Capital. They know that the factory of Tyre manufacturing pollutes the environment. Therefore, there are two options available before them: (i) The factory can be opened in rural areas where local residents are poor and illiterate. (ii) An advanced pollution control plant can be installed in their factory to control the pollution. They decided to choose the second option which involves an additional cost of Rs.4,00,000. On 1st July 2020 to arrange this amount, the firm took a loan of Rs.3,00,000 from ICICI Bank carrying interest @ 12% p.a. and the rest Rs.1,00,000 was provided by Rohan as a loan to the firm without any agreement. During the year Rohan withdrew Rs.4,000 at the end of each quarter and Mohan withdrew Rs.12,000. Interest on drawings is to be charged @ 6% p.a. At the end of the first year, the firm earns a net profit of Rs.1,50,000.
State who is correct in the following case: Rohan demands interest on capital @ 12% p.a. on Rs.2,00,000 being his extra capital, Mohan does not agree.

Option 1: Rohan

Option 2: Mohan

Option 3: Both are correct

Option 4: No one is correct

Question : Rohan and Mohan are two friends belonging middle class family. On 1st April, 2020 they started a business of Tyre manufacturing in the form of a partnership firm without any agreement and contribute Rs.4,00,000 and Rs.2,00.000 respectively as Capital. They know that the factory of Tyre manufacturing pollutes the environment. Therefore, there are two options available before them: (i) The factory can be opened in rural area where local residents are poor and illiterate. (ii) An advanced pollution control plant can be installed in their factory to control the pollution. They decided to choose the second option which involves an additional cost of Rs.4,00,000. On 1st July 2020 to arrange this amount, the firm took a loan of Rs.3,00,000 from ICICI Bank carrying interest @ 12% p.a. and rest Rs.1,00,000 was provided by Rohan as a loan to the firm without any agreement. During the year Rohan withdrew Rs.4,000 at the end of each quarter and Mohan withdrew Rs.12,000. Interest on drawings to be charged @ 6% p.a. At the end of first year the firm earns a net profit of Rs.1,50,000.
Interest on Rohan's loan will be:

Option 1: NIL

Option 2: Rs.12,000

Option 3: Rs.4,500

Option 4: Rs.9,000

Question : Rohan and Mohan are two friends belonging middle-class family. On 1st April, 2020 they started a business of Tyre manufacturing in the form of a partnership firm without any agreement and contributed Rs.4,00,000 and Rs.2,00.000 respectively as Capital. They know that the factory of Tyre manufacturing pollutes the environment. Therefore, there are two options available before them: (i) The factory can be opened in rural area where local residents are poor and illiterate. (ii) An advanced pollution control plant can be installed in their factory to control the pollution. They decided to choose the second option which involves an additional cost of Rs.4,00,000. On 1st July 2020 to arrange this amount, the firm took a loan of Rs.3,00,000 from ICICI Bank carrying interest @ 12% p.a. and rest Rs.1,00,000 was provided by Rohan as a loan to the firm without any agreement. During the year Rohan withdrew Rs.4,000 at the end of each quarter and Mohan withdrew Rs.12,000. Interest on drawings to be charged @ 6% p.a. At the end of first year the firm earns a net profit of Rs.1,50,000.
Drawings of Rohan will be shown on:

Option 1: Debit side of the Profit and Loss Appropriation A/c

Option 2: Debit side of the Rohan's capital A/c

Option 3: Credit side of the Profit and Loss Appropriation A/c

Option 4: Credit side of the Rohan's capital A/c

Question : Mr Yash, a partner in the firm withdrew Rs.24,000 at the end of every half year. The interest on such drawings will be charged @ 12% p.a. The amount of interest on drawings will be:

Option 1: Rs.2,880

Option 2: Rs.1,440

Option 3: Rs.2,400

Option 4: Rs.2,000

Question : A and B are Partners in a Partnership firm without any agreement. A has withdrawn Rs. 50,000 out of his capital as Drawings. Interest on Drawings may be charged from A by the firm.

Option 1: @ 5% p.a.

Option 2: @ 6% p.a.

Option 3: @ 6% per month

Option 4: No interest can be charged.