Question

on 1st April, 2020 govind and gopal started business with capital of 150000 and 100000 respectively. during the year govind introduced 25000 and Gopal introduced 10000 as additional capital on 1st October 2020. interest on capital is to be allowed 5% per annum. calculate the internet on capital payable to govind and Gopal for the year ended 31st march, 2021.​

Answer 1

Answer:

800

Explanation:

Calculation of Capital balance in the beginning:

Particulars Ram Mohan

Capitals at the end of the year 24000 18000

Less: Profit already credited (8000) (8000)

Add: Drawings already debited 4000 6000

Capital at the beginning of the year 20000 16000

Note: Interest on capital is always calculated on the opening balance of the partner's capital.

Ram's interest on capital= 20000 * 5/100

= 1000

Mohan's interest on capital= 16000 * 5/100

=800