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Following is the extract of the Balance Sheet of Neelkant and Mahadev as on 31st March 2023:

Balance Sheet as at 31st March, 2023

Liabilities Assets

Neelkant’s Capital

Mahadev’s Capital

Neelkant’s Current A/c

Mahadev’s Current A/c

Profit & Loss A/c (2022-23)

10,00,000

10,00,000

1,00,000

1,00,000

8,00,000

Sundry Assets 30,00,000
  30,00,000   30,00,000

During the year, Mahadev’s drawings were ₹ 30,000. Profit during the year ended 31st March 2023 is ₹ 10,00,000. Calculate interest on capital @ 5% p.a. for the year ending 31st March 2023.

[Ans: Interest on Capital: Neelkant – ₹ 50,000; Mahadev – ₹ 50,000]

Anurag Pathak Changed status to publish April 11, 2024
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