From the following Balance Sheet of Long and Short, Calculate interest on capital @ 8% p.a. for the year ended 31st March 2023.
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 |
| Â | 3,60,000 | Â | 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 April 11, 2024
