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Standard XI

Accountancy

BRS Starting with Pass Book Balance

Following is ...

Question

Following is the extract of the Balance Sheet of Neelkant and Mahadev as on 31st March, 2018.
Liabilities Rs. Assets Rs.
Neelkant's Capital
Mahadev's Capital
Neelkan't Curent A/c
Mahadev's Current A/c
Profit and Loss Appropriation A/c (March 2018) 10,00,000
10,00,000
1,00,000
1,00,000
8,00,000
Sundry Assets

30,00,000

30,00,000 30,00,000
During the year Mahadev's drawings were Rs. 30,000. profits during the year ended 31st march, 2018 is Rs. 10,00,000. calculate interest on capital @ 5% p.a. for the ending 31st march, 2018.

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Solution

Assuming that Mahadev's drawings are from his capital.
Calculation of Interest on Capital
Neelkant:- Interest on 10,00,0005% = 50,000

Mahadev's:- Interest on( 10,00,000-30,000)
= 9,70,0005%
= 48,500

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Similar questions

Q. Following is the extract of the Balance Sheet of Neelkant and Mahadev as on 31st March, 2018.

BALANCE SHEET as at 31st March, 2018
Liabilities	₹	Assets***	₹***
Neelkant's Capital	10,00,000	Sundry Assets	30,00,000
Mahadev's Capital	10,00,000
Neelkant's Current A/c	1,00,000
Mahadev' Current A/c	1,00,000
profit and Loss Appropriation A/c (March 2018)	8,00,000
	30,00,000		30,00,000

During the year, Mahadev's drawings were ₹ 30,000. Profits during the year ended 31st March, 2018 is ₹ 10,00,000. Calculate interest on capital @ 5% p.a. for the year ending 31st March, 2018.

Q. From the following Balance Sheet of

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During the year ended 31st March, 2018,

X^{'} s

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and

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Following is the extract of the Balance Sheet of Neelkant and Mahadev as on March 31, 2007

Balance Sheet

As on March 31, 2007

$\begin{matrix} Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Neelkant's Capital & 10,00,000 & Sundry Assets & 30, 00, 000 Mahadev's Capital & 10, 00, 000 Neelkant's Current Account & 1, 00, 000 Mahadev's Current Account & 1, 00, 000 Profit and Loss & 8, 00, 000 Appropriation (March 2007) ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 30, 00, 000 - --------- - - --------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 30, 00, 000 - --------- - - --------- - \end{matrix}$

During the year Mahadev's drawings were Rs 30,000. Profits during 2007 is Rs 10,00,000. Calculate interest on capital @ 5% pa for the year ending March 31, 2007.

Q. Reema and Seema are partners sharing profits equally. The Partnership Deed provides that both Reema and Seema will get monthly salary of

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Liabilities	Rs.	Assets	Rs.
Neelkant's Capital Mahadev's Capital Neelkan't Curent A/c Mahadev's Current A/c Profit and Loss Appropriation A/c (March 2018)	10,00,000 10,00,000 1,00,000 1,00,000 8,00,000	Sundry Assets	30,00,000
	30,00,000		30,00,000

Assuming that Mahadev's drawings are from his capital.Calculation of Interest on CapitalNeelkant:- Interest on 10,00,000*5% = 50,000 Mahadev's:- Interest on( 10,00,000-30,000) = 9,70,000*5% = 48,500

Assuming that Mahadev's drawings are from his capital.
Calculation of Interest on Capital
Neelkant:- Interest on 10,00,0005% = 50,000

Mahadev's:- Interest on( 10,00,000-30,000)
= 9,70,0005%
= 48,500