Question:
Interest on capital payable to Vivek will be:
Interest on capital payable to Vivek will be:
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Interest on capital is provided as per the agreement among partners, but it is calculated only on the actual capital contributed.
Updated On: Jan 13, 2026
- ₹ 48,000
- ₹ 60,000
- ₹ 57,000
- ₹ 24,000
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The Correct Option is C
Solution and Explanation
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).
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