CBSE BOARD XII, asked by diyadhiman670, 1 month ago

intrest on capital cash withdrawn during the year. how to calculate?

Answers

Answered by hudaattar123
1

Answer:

Calculation of interest on capital

Interest on capital is to be calculated on the capitals at the beginning for the relevant period. If there is any additional capital introduced or capital withdrawn during the year, it will cause change in the capitals and interest is to be calculated proportionately on the changed capitals for the relevant period.

Interest on capital = Amount of capital x Rate of interest per annum x Period of interest

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