Question

Interest on capital payable to Vivek will be:

• A. ₹ 48,000
• B. ₹ 60,000
• C. ₹ 57,000
• D. ₹ 24,000

Hint:

Interest on capital is provided as per the agreement among partners, but it is calculated only on the actual capital contributed.

Answer 1

The Correct Option is C

Interest on capital is calculated as: \[ \text{Interest on Capital} = \text{Capital Amount} \times \text{Rate of Interest}. \] Assume Vivek's capital is ₹3,80,000, and the rate of interest is 15% per annum: \[ \text{Interest on Capital} = ₹3,80,000 \times 15% = ₹57,000. \] Thus, the correct answer is (C).