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From the following Balance Sheet of Long and Short, Calculate interest on capital @ 8% p.a. for the year ended 31st March 2023.

Balance Sheet as at 31st March, 2023

Liabilities Assets
Long’s Capital A/c
Short’s Capital A/c
General Reserve
1,20,000
1,40,000
1,00,000
Fixed Assets
Other Assets
3,00,000
60,000
  3,60,000   3,60,000

During the year, Long withdrew ₹ 40,000 and Short withdrew ₹ 50,000. Profit for the year was ₹ 1,50,000 out of which ₹ 1,00,000 was transferred to General Reserve.

[Ans: Interest on Long’s Capital – ₹ 10,800; Interest on Short’s Capital – ₹ 13,200.]

Anurag Pathak Changed status to publish 2 days ago
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