From the following Balance Sheet of Long and Short- calculate interest on capital - 8 - p-a- for the year ended 31st March- 2019 -BALANCE SHEETDuring 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-

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Standard VI

Mathematics

Finding Amount

From the foll...

Question

From the following Balance Sheet of Long and Short, calculate interest on capital @ 8% p.a. for the year ended 31st March, 2019.

BALANCE SHEET
as at 31st March, 2019

Liabilities ₹ Assets ₹

Long's Capital A/c 1,20,000 Fixed Assets 3,00,000

Short's Capital A/c 1,40,000 Other Assets 60,000

General Reserve 1,00,000

3,60,000 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.

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Solution

Calculation of Capital at the beginning (as on April 01, 2018)

Particulars

Long
(₹)

Short
(₹)

Capital at the end

1,60,000

1,40,000

Less: Adjusted Profit (1,50,000 – 1,00,000) in 1:1 ratio

(25,000)

(25,000)

Add: Adjusted Drawings

-

50,000

Capital in the beginning

1,35,000

1,65,000

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BALANCE SHEET as at 31st March, 2019
Liabilities	₹	Assets	₹
Long's Capital A/c	1,20,000	Fixed Assets	3,00,000
Short's Capital A/c	1,40,000	Other Assets	60,000
General Reserve	1,00,000
	3,60,000		3,60,000

Particulars	Long (₹)	Short (₹)
Capital at the end	1,60,000	1,40,000
Less: Adjusted Profit (1,50,000 – 1,00,000) in 1:1 ratio	(25,000)	(25,000)
Add: Adjusted Drawings	-	50,000
Capital in the beginning	1,35,000	1,65,000

Calculation of Capital at the beginning (as on April 01, 2018) Particulars Long (₹) Short (₹) Capital at the end 1,60,000 1,40,000 Less: Adjusted Profit (1,50,000 – 1,00,000) in 1:1 ratio (25,000) (25,000) Add: Adjusted Drawings - 50,000 Capital in the beginning 1,35,000 1,65,000