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Providing Interest on Capital

F's capital o...

Question

F's capital on January 1, 20X2 is Rs. 45,000, Interest on drawing is Rs. 5,000, Interest on Capital is Rs. 2,000. Drawings is Rs. 14,000, Profit for the year is Rs. 15,000. His capital as on 31.12.20X2 is _____________________.

A

Rs. 67,000

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B

Rs. 43,000

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C

Rs. 47,000

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D

Rs. 69,000

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Solution

The correct option is C Rs. 43,000
Capital in the beginning of the year 45,000
Less:- drawings (14,000)
Interest on drawings (5,000) (19,000)
----------------
Add:- Interest on capital 2,000
Profit for the year 15,000 17,000
-----------------
Capital at the end of the year 43,000

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Similar questions

Q. Capital on 1 January Rs.65,000, Interest on drawing Rs.5,000, Interest on Capital Rs.2,000, Drawings Rs.14,000, Profit for the year Rs.15,000. His capital as on 31 December will be _____________.

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B

are partners in a business and their capitals at the end of the year were

R s . 7, 00, 000

R s 6, 00, 000

respectively. Calculate their opening capitals considering the following information:
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R s . 75, 000

R s . 50, 000

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introduced capital of

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(c) Interest on capital credited to the Capital Accounts of

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Q. On 31st March, 2018, Capital Accounts of

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after making adjustments for profits, drawings, etc., were as

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. Subsequently, it was found that interest on capital and interest on drawings had been omitted. The partners were entitled to interest on capital @

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p.a. Drawings during the year were:

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Pass necessary adjustment entry for rectifying the above errors of omission. Show your workings.

Q. A and B are partners having capital of Rs. 5,000 and Rs. 6,000 respectively. Interest on capital is given @ 5% p. a. Profits for the year before the appropriation is Rs. 4.600 provide interest on capital out of profits. Interest allocated to partners is:

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