Question

On 1st April 2018, 2fs Capital was ₹2,00,000. On 1st October 2018, he introduces additional capital of ₹1,00,000. Interest on capital @ 6% p.a. on 31st March, 2019 will be :​

Answer 1

Explanation:

On 1st April 2018=2,00,000

So,Interest of Capital at time= 2,00,000×6/100=12000

On 1st October 2018=1,00,000

So,Interest of Capital at time=

1,00,000×6/100×6/12=3,000

Now total interest of Capital up to 31st March is

12,000+3,000=15,000

Hope it helps you

Answer 2

Interest on Capital will be 15,000.

GIVEN: Capital on 1 April 2018 = 2,00,000 ; Capital on 1st October 2018 = 1,00,000

TO FIND: Interest on capital 2019

SOLUTION:

Interest in the capital is given annually.

Interest is charged @ 6% p.a.

Interest is given on capital that is being invested in the business.

Interest on Capital on 1st April 2018 = 2,00,000 × $\frac{6}{100}$ $\frac{12}{12}$

                                                              = 12,000

As this capital is running in the business for the year so interest will be charged for the year.

Interest on Capital on 1st October 2018 = 1,00,000 × $\frac{6}{100}$ × $\frac{6}{12}$

                                                                  = 3,000

As this capital is introduced on 1 October and is in the business for 6 months, the introduction will charge for 6 months only.

Total Interest on Capital = 12,000 + 3,000

                                         = 15,000

Interest on capital will be 15,000.

PROJECT CODE #SPJ3