Sunflower and Pink Rose Started Partnership Business On April 01, 2016 With Capitals of Rs 2,50,000 and Rs 1,50,000, Respectively :- Sunflower and Pink Rose

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Sunflower and Pink Rose started partnership business on April 01, 2016 with capitals of Rs 2,50,000 and Rs 1,50,000, respectively. On October 01, 2016, they decided that their capitals should be Rs 2,00,000 each. The necessary adjustments in the capitals are made by introducing or withdrawing cash. Interest on capital is to be allowed @ 10% p.a. Calculate interest on capital as on March 31, 2017.




Calculation for Sunflower’s interest on Capital

April 01,2016 to September 30,2016Rs 2,50,000 X `10/100` X `6/12`Rs. 12,500
October 01,2016 to March 31,2017Rs 2,00,000 X `10/100` X `6/12`Rs. 10,000
Interest on sunflower’s capitalRs. 22,500

Calculation for Pink’s interest on Capital


April 01,2016 to September 30,2016Rs 1,50,000 X `10/100` X `6/12`Rs. 7,500
October 01,2016 to March31,2017Rs 2,00,000 X `10/100` X `6/12`Rs. 10,000
Interest on pink’s capitalRs. 17,500

Interest on sunflower’s capital = Rs. 22,500

Interest on pink’s capital= Rs 17,500 



Chapter-2 Partnership Basic: Accounts



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