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