Question

Following is the extract of the Balance Sheet of Neelkant and Mahadev as on 31st March, 2020: BALANCE SHEET as at 31st March, 2020 Liabilities ` Assets ` Neelkant’s Capital 10,00,000 Sundry Assets 30,00,000 Mahadev’s Capital 10,00,000 Neelkant’s Current A/c 1,00,000 Mahadev’ Current A/c 1,00,000 Profit and Loss A/c (2019–20) 8,00,000 30,00,000 30,00,000 During the year, Mahadev’s drawings were ` 30,000. Profits during the year ended 31st March, 2020 is ` 10,00,000. Calculate interest on capital @ 5% p.a. for the year ending 31st March, 2020. (

Answer 1

Explanation:

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