Interest on capital is charged on opening capital balance. Interest on capital is always allowed after taking into consideration any withdrawl or introduction of capital during the year. Aren't the two statements contradictory?

Dear Student
Interest on capital is charged on opening capital for whole year (if provided in partnership deed) and further if any addition/ withdraw is done in capital than we charged interest from the date of introduction/ withdrawn  of capital.now let understand this by an example there are three partners A, B and C in a firm with capital of Rs 100000, Rs 100000 and Rs 100000. Suppose during the financial year B introduce Rs 24000 on 1st July2019 and C withdraw Rs 20000 on 1st october.2019. Calculate Interest on capital  at 10% year ended on March 31st. 2020.
 

Particulars	calculation	Interst on capital
A's interest on capital	100000 x 10/100	10000
B's interest on capital	100000 x10/100 + (24000 x10/100 x 9/12)	11800
C's interest on capital	100000 x 10/100 x 6/12 + (80000 x 10/100 x 6/12)	9000

 By this we can see clearly we need opening capital because there might be a partner who didn't make any change in there capital like A or partners who  withdrawn  or add in there capitals like C and B respectively. So these two statement are not contradict but it completes and make sense like we need opening capital and  further consider any addition or withdrawn in capitals by the partners.

Hoping this will clear your doubt.


Regards