R 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
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!!
Very correctly said by Sultan . I agree with him .
A R JADHAV AND ASSOCIATES
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CA Inter
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BHUPINDER SHAH AND COMPANY
New Delhi
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SKAA & Associates
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