Question

Following is the extract of the Balance Sheet of, Neelkant and Mahdev as on March 31, 2013:







Balance Sheet as at March 31, 2013




Balance Sheet as at March 31, 2013




Balance Sheet as at March 31, 2013




Balance Sheet as at March 31, 2013











Amount







Amount





Liabilities



Rs



Assets



Rs





Neelkant’s Capital



10,00,000



Sundry Assets



30,00,000





Mahadev’s Capital



10,00,000













Neelkant’s Current Account



1,00,000













Mahadev’s Current Account



1,00,000













Profit and Loss Apprpriation

















(March 2007*)



8,00,000

















30,00,000







30,00,000























During the year Mahadev’s drawings were Rs 30,000. Profits during 2013 is Rs 10,00,000. Calculate interest on capital @ 5% p.a for the year ending March 31, 2013.

* As per the question, this year should be March 2013

Answer 1

Laibilities. amt. assets. amt
capital. 10,00,000. bank. 100,000
+ 10,00,000. +10,000
20,00,000. 200000