Amit and Bramit started business on 1st april 2024 with capitals of Rs 15,00,000 and Rs 9,00,000 respectively

30:- Amit and Bramit started business on 1st April 2024 with capitals of Rs 15,00,000 and Rs 9,00,000 respectively. On 1st October 2024, they decided that their capital should be Rs 12,00,000 each. The necessary adjustments in the capital were made by introducing or withdrawing by cheque. Interest on capital is allowed @ 8% p.a. Compute interest on capital for the year ended 31st March 2025.

Solution : Calculation of interest of capital of Amit
From 1^st April 2024 to 1^st October 2024 = 15,00,000 x 8% x 6/12 = Rs 60,000
From 1^st October 2024 to 31^st march 2025 = 12,00,000 x 8% x 6/12 = Rs 48,000
Total interest on capital of Amit = 60,000 + 48,000 = Rs 1,08,000

Calculation of interest of capital of Bramit
From 1^st April 2024 to 1^st October 2024 = 9,00,000 x 8% x 6/12 = Rs 36,000
From 1^st October 2024 to 31^st march 2025 = 12,00,000 x 8% x 6/12 = Rs 48,000
Total interest on capital of Bramit = 36,000 + 48,000 = Rs 84,000