Following is the extract of the Balance Sheet of Neelkant and Mahadev as on March 31-2007 Balance SheetAs on March 31-2007WineWineMahadev-s Capital - 10-00-000 - 1 t e x t N e e l k a n t - s C u r r e n t A c c o u n t - 1-00-000 -Mahadev-s Current Account - 1-00-000 - t e x t P r o f i t a n d L o s s - 8-00-000 -Appropriation March 2007 -Winearray 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 -

Interest on Capital: Neelkant ⇒ 10,00,000 ×5/100 = Rs 50,000 Mahadev ⇒ 10,00,000 ×5/100 = Rs 50,000 ...

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Standard XII

Accountancy

Interest on Drawings-Withdrawn at the End of Every Month

Following is ...

Question

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.

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Solution

Interest on Capital:

Neelkant $\Rightarrow 10, 00, 000 \times \frac{5}{100} = R s 50, 000$

Mahadev $\Rightarrow 10, 00, 000 \times \frac{5}{100} = R s 50, 000$

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Q. Following is the extract of the Balance Sheet of Neelkant and Mahadev as on 31st March, 2019.

BALANCE SHEET
as at 31st March, 2019
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 (2018-19)	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, 2019 is ₹ 10,00,000. Calculate interest on capital @ 5% p.a. for the year ending 31st March, 2019.

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Interest on Capital: Neelkant ⇒10,00,000×5100=Rs 50,000 Mahadev ⇒10,00,000×5100=Rs 50,000

Interest on Capital:

Neelkant $\Rightarrow 10, 00, 000 \times \frac{5}{100} = R s 50, 000$

Mahadev $\Rightarrow 10, 00, 000 \times \frac{5}{100} = R s 50, 000$