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