question_answer

Balance Sheet of Sunita and Simran as on 31st March 2021.

Liabilities		Amount	Assets	Amount
Capital A/cs:	Sunita	2,00,000	Non-current Assets	6,00,000
	Simran	2,00,000	Current Assets	1,40,000
Current A/cs:	Sunita	20,000
	Simran	20,000
General Reserve		3,00,000
		7,40,000		7,40,000

Drawings made by the partners during the year were Rs.10,000 and Rs.8,000. Profit during the year was Rs.4,50,000 out of which 3,00,000 was transferred to the General Reserve. After closing the accounts, it was noticed that interest on capital @6% p.a. for the year was not provided. Interest on capital of Sunita and Simran will be:

A) Sunita 8,100 and Simran 7,980 

B) No interest on capital due to negative capital

C) Sunita 12,000 and Simran 12,000

D) Sunita 12,000 and Simran 10,000