Case 1: If Capitals are fixed:
Calculation of Interest on Capital
Working Notes:
WN1: Calculation of Opening Capital:
Particulars |
Simrat |
Bir |
Capital at the end |
4,80,000 |
6,00,000 |
Add: Drawings out of capital |
2,40,000 |
60,000 |
Less: Fresh capital introduced |
1,20,000 |
3,00,000 |
Capital at the beginning |
6,00,000 |
3,60,000 |
Case2: If Capitals are Fluctuating:
Calculation of Interest on Capital
Working Notes:
WN1: Calculation of Opening Capital:
Particulars |
Simrat |
Bir |
Capital at the end |
4,80,000 |
6,00,000 |
Add: Drawings out of capital |
2,40,000 |
60,000 |
Add: Drawings out of profit |
1,20,000 |
60,000 |
Less: Fresh capital introduced |
1,20,000 |
3,00,000 |
Less: Profit already credited |
1,44,000 |
96,000 |
Capital at the beginning |
5,76,000 |
3,24,000 |