CameraIcon

SearchIcon

MyQuestionIcon

4

You visited us 4 times! Enjoying our articles? Unlock Full Access!

Providing Interest on Capital

X & Y started...

Question

X & Y started business on 1st April 2017 with capitals of Rs 5,00,000 & Rs 3,00,000 resp. There is no withdrawal or addition of capital during the year.

Calculate the interest on capital @ 12% p.a. if the books of accounts are closed on 31st March 2018.

A

Rs 60,000 & Rs 36,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

B

Rs 45,000 & Rs 27,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Rs 27,000 & Rs 45,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

D

Rs 3,600 & Rs 6,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
Rs 60,000 & Rs 36,000

Interest on capital (X) = Rs 5,00,000 * 12% = Rs 60,000

Interest on capital (Y) = Rs 3,00,000 *12% = Rs 36,000

Suggest Corrections

thumbs-up

2

Similar questions

X

Y

are partners sharing profits in the ratio of

3 : 2

. On 31st March, 2017 after closing the books of account, their capitals are

R s . 10, 00, 000

R s . 12, 50, 000

respectively. On 1st May, 2016,

X

had introduced an additional capital of

R s . 2, 50, 000

Y

R s . 1, 25, 000

from his capital. On 1st October, 2016,

X

R s . 5, 00, 000

from his capital and

Y

R s . 6, 25, 000

. After closing the accounts, it was discovered that Interest on Capital @

6 %

p.a. has been omitted. During the year ended 31st March, 2017,

X^{'} s

Y^{'} s

R s . 2, 50, 000

R s . 1, 25, 000

. Profits (before interest on Capital) during the year were

R s . 5, 00, 000

.
Calculate Interest on Capital if the capitals are (a) fixed and (b) fluctuating.

Q. A and B started business on 1st April, 2017 with capitals of Rs. 15,00,000 and Rs. 9,00,000 respectively. On 1st October, 2017, they decided that their capitals should be Rs. 12,00,000 each. The necessary adjustments in capitals were made by introducing or withdrawing by cheque. Interest on capital is allowed@ 8% p.a. Compute interest on capital for the year ended 31st March, 2018.

X

Y

are partners in a firm sharing profits and losses in the ratio of 3 : 2.

On 31st March 2018 after closing the books of account, their Capital Accounts stood at Rs. 4,80,000 and Rs. 6,00,000 respectively .

On 1st May, 2017,

X

introduced an additional capital of Rs. 1,20,000 and Y withdrew Rs. 60,000 from his capital. On 1st October, 2017, X withdrew Rs. 2,40,000 from his capital and Y introduced Rs. 3,00,000. Interest on capital is allowed at 6% p.a. Subsequently, it was discovered that interest on capital @ 6% p.a. had been omitted. The profits for the year ended 31st March, 2018 amounted to Rs. 2,40,000 and the partners drawings had been: X- R. 1,20,000 and Y - Rs. 60,000. Compute the interest on capital if the capitals are
(a) fixed, and (b) fluctuating.

Q. Ajay and Vijay are partners in a firm. Their capital accounts as on April 1, 2015 showed a balance of Rs

2, 00, 000

3, 00, 000

respectively. On 1st july,2015, Ajay introduced additional capital of Rs

50, 000

60, 000

. On 1st Oct, Ajay withdrew Rs

30, 000

, and on 1st Jan, 2016 Vijay withdraw, Rs

15, 000

from their capitals. Interest is allowed @

8

p.a.
Calculate interest payable on capital to both the partners during the financial year 2015-2016.

A

B

started business on 1st April, 2017 with capitals of

R s . 6, 00, 000

R s . 4, 00, 000

respectively During the year, A introduced

R s .1, 00, 000

to the firm as additional capital on 1st October, 2017. They withdrew

R s .50, 000

per month for household expenses against profits. Interest on capital is to be allowed @

10 %

per annum. Calculate interest payable to

A

B

for the year ended 31st March, 2018.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Calculating Interest on Capital

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Providing Interest on Capital

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon