Following is the extract of the Balance Sheet of Neelkant and Mahadev as on 31st March 2023:
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 |
| Â | 30,00,000 | Â | 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]
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