Q4 (Interest on Capital). P, Q and R are the three partners of a business. On 31st Dec 2010 after all the necessary adjustments, the capital account of P, Q and R stood as Rs.50,000, Rs.30,000, Rs.20,000, respectively.

142.950rest It was discovered that interest on capital @ 5% per annum had been omitted. The profit for the same year amounted to Rs.70,000 and the partner's drawings had been Rs.10,000, Rs.7,500, and Rs.4,500, respectively for P, Q and R. The profit sharing ratio for P: Q: R is 4:1:2. Calculate the Interest on Capitals.