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.
Rs 60,000 & Rs 36,000
Rs 45,000 & Rs 27,000
Rs 27,000 & Rs 45,000
Rs 3,600 & Rs 6,000
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