X and Y are two partners with a capital of Rs. 30,000 and Rs. 20,000 respectively. They are allowed interest @10% on the total capital. If the profit before interest on capital is Rs. 4000, how much interest will be paid to the partners?

The total interest calculated on the capital is 10 percent of 30000, which is 3000, plus 10 percent of 20000, which is 2000, totaling 5000. According to the partnership deed, the maximum interest payable is the net profit available before charging such interest. Since the available profit is only 4000, which is less than 5000, interest cannot be paid to the partners. Therefore, the interest paid is nil.

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