Solution
Amount advanced by the Partners = Rs 30,000
Profit sharing ratio = 3: 2
Advanced by A =30,000×3/5=18,000
Advanced by B =30,000×2/5=12,000
Time Period (from October 01, 2017 to March 31, 2018) = 6 months
Interest rate = 6% p.a.
Calculation of Interest on Advances
Interest on A’s advance=18,000×6/100×6/12=540
Interest on A’s advance=12,000×6/100×6/12=360
Note: In the absence of a partnership agreement regarding rate of interest on loans and advances, interest is provided at 6% p.a.