From the following Balance Sheet of A and B, calculate interest on capital at 5% p.a. for the year ending 31st March, 2024
From the following Balance Sheet of A and B, calculate interest on capital at 5% p.a. for the year ending 31st March, 2024:
Balance Sheet as at 31st March, 2024
| Liabilities | ₹ | Assets | ₹ |
|
A’s Capital B’s Capital P and L Appropriation A/c (2023-24) |
1,00,000 80,000 40,000 |
Fixed Assets Current Assets Drawings – B |
1,40,000 60,000 20,000 |
| Â | 2,20,000 | Â | 2,20,000 |
Profit during the year ended 31st March, 2024 was ₹ 70,000. A and B share profits in the ratio of 2 : 1. Drawings during the year ended 31st March, 2024 were A ₹ 16,000 and B ₹ 20,000.
[Ans. Interest on Capitals : A ₹ 4,800; B ₹ 3,500.]
Anurag Pathak Changed status to publish June 13, 2024
