aman started business with capital ₹ 5,00,000 on 1 april 2019. He introduced additional capital ₹ 3,00,000 on 1 oct 2019. He charged on capital @ 10% p.a. Calculate the amount of interest on capital and show it in the final accounts.
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Answer:
Interest on capital
1.4.2019 to 30.9.3019(for 6 months)
500000×10/100×6/12= 25000
1.20.2019 to 31.3.2020(for 6 months )
800000× 10/100×6/12=40000
total interest = 25000+40000=65000
profit and loss account
dr . amt
Interest on capital 65000
Balance Sheet
liabilities
capital 800000
+ interest
in capital 65000
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