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Question
The capital account of Begum and Fatima on 1st January, 2018 showed a balance of ₹ 50,000 and ₹ 40,000 respectively. On 1st October, 2018, Begum introduced an additional capital of ₹ 10,000 and on 1st May, 2018 Fatima introduced an additional capital of ₹ 9,000.
Calculate interest on capital at 4% p.a. for the year ending 31st December, 2018.
Solution
| Begum | Fatima | ||
| `50,000 xx 4/100` | 2,000 | `40,000 xx 4/100` | 1,600 |
| Additional capital: | Additional capital: | ||
| `10,000 xx 4/100 xx 3/12` | 100 | `9,000 xx 4/100 xx 8/12` | 240 |
| Begum's Total Interest: | 2,100 | Fatima's Total Interest: | 1,840 |
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