Question:

Interest on capital will be provided to Aditi and Saurabh in which of the following ratio?

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In partnership problems, always check the capital contributions or agreements for distributing interest on capital.
Updated On: Jan 28, 2025
  • \(5:4\)
  • \(2:1\)
  • \(1:1\)
  • \(8:1\)
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The Correct Option is A

Solution and Explanation

The ratio of interest on capital is determined by the capital contributions of the partners. If no specific information is provided, we assume that their capital contributions are in the ratio \(5:4\), and interest on capital is distributed in the same proportion. Thus, interest on capital will be provided to Aditi and Saurabh in the ratio \(5:4\).
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