Question

Read the following hypothetical situation and answer the question:

Keshav and Hitesh are partners sharing profits and losses in the ratio of 3 : 2. On 31st March, 2023 after division of profit of ₹ 15,000, their capitals were ₹ 55,000 and ₹ 45,000, respectively. During the year, Keshav's drawings were ₹ 1,500 at the beginning of each quarter and Hitesh withdrew ₹ 9,000 on 1st November, 2022. After the final accounts have been prepared, it was discovered that interest on capital @ 5% p.a. and interest on drawings @ 8% p.a. have not been taken into consideration.

Amount of interest to be charged on Hitesh's drawings will be ______.

Options

• ₹ 225

• ₹ 4,500

• ₹ 300

• ₹ 7,200

Answer 1

Amount of interest to be charged on Hitesh's drawings will be ₹ 300.

Explanation:

Hitesh's drawings = `9,000 xx 8/100 xx 5/12`

= ₹ 300