Majid and Rashid are partners in a firm. Their capital accounts as on 1^st April 2019 showed a balance of OMR 100,000 and OMR 200,000 respectively. On 1^st July 2019 Majid introduced additional capital of OMR 40,000 and Rashid OMR 50,000. On 1^st October Majid withdrew OMR 20,000 and 1^st January 2020 Rashid withdrew OMR 10,000 from their capitals. Interest on capital is 6% and interest on drawings is 8% per annum the accounting period ends on March 31^st every year.

1. Calculate interest on capital of both the partners during the year 2019-2020. (4 marks)
2. What is the meaning of treatment of guarantee of minimum profit to a partner? (1 mark)