Question

After closing accounts, it was found that interest on capital of Mr. Rishi @12% p.a. was omitted:
His (fluctuating) balance as on 31.03.2021 is ₹500000
Additional capital introduced on 01.07.2020 is ₹100000
Drawings against profit on 01.10.2020 are ₹60,000
Mr. Rishi’s salary and commission is 80,000 p.a. and 10,000 respectively. Interest on drawings (Mr. Rishi) is ₹5000 p.a.
Find out his interest on capital
(a) 60,000
(b) 50,400
(c) 54000
(d) 50,000

Answer 1

Answer:

50400

Explanation:

500000capital balance+100000additional capital-60000drawings +80000commition-5000paid int on drawings-5000lioability unpaid

= 610000    12 % per anumm

Answer 2

Explanation:

correct answer is (c) 54000

500000+100000-80000(salary)-10000(commision)-60000(drawing against profit)=450000

450000*12/100=54000

no interest on drawing is charged when drawing is aginst profit.