63:- Simrat and Bir are partners in a firm sharing profits and losses in the ratio of 3:2. On 31st March, 2025 after closing the books of account, their capital accounts were Rs 4,80,000 and Rs 6,00,000 respectively. On 1st May, 2024, Simrat introduced additional capital of Rs 1,20,000 and Bir withdrew Rs 60,000 from his capital. On 1st October, 2024, Simrat withdrew Rs 2,40,000 from her capital and Bir introduced Rs 3,00,000. Interest on capital is allowed at 6% p.a. Subsequently, it was noticed that interest on capital @6% p.a. had not been allowed. Profit for the year ended 31st March, 2025 was Rs 2,40,000 and the partners drawings were:
Simrat – Rs 1,20,000 and Bir – Rs 60,000
Compute the interest on capital if the capitals are (a) fixed, and (b) fluctuating
Solution:-
