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Standard XII

Accountancy

Preparing Financial Statements of NPO-I

From the foll...

Question

From the following Balance Sheet of Long and Short, calculate interst on capital @ 8% p.a. for the year ended 31st March, 2018.

BALANCE SHEET as at 31st March, 2018

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, 2017)

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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Similar questions

Q. 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.

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

X

and

Y

, calculate interest on capital

5 %

pa. for the year ended 31st March, 2018:
During the year ended 31st March, 2018,

X^{'} s

drawings were

R s . 10, 000

and

Y^{'} s

drawings were

R s . 30, 000

. Profit for the year ended 31st March, 2018 was

R s . 60, 000

. The amount of Reserve, i.e.,

R s .40, 000

is transferred from Current Year's profit to strengthen the financial position of the firm.

Q. 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.

Q. Mannu and shristhi are partners in a firm sharing profit in the ratio of 3 : 2. Following is the balance sheet of the firm as on 31st March 2018:

BALANCE SHEET as at 31^st March, 2018
Liabilities		₹	Assets		₹
Mannu’s Capital	30,000		Drawings:
Shristhi’s Capital	10,000	40,000	Mannu	4,000
			Shristhi	2,000	6,000
			Other Assets		34,000
		40,000			40,000

Profit for the year ended 31st March, 2018 was ₹ 5,000 which was divided in the agreed ratio, but interest @ 5% p.a. on capital and @ 6% p.a. on drawings was inadvertently enquired. Adjust interest on drawings on an average basis for 6 months. Give the adjustment entry.

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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, 2017) 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, 2017)

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