Question

On December 31st, 2018 after closing of accounts, the capitals of A. B and C stood in the books of firm at 2,00,000, 1,50,000 and 1,00,000. Subsequently, it was discovered that the interest on capital @ 10% per annum had been omitted. The profit for the year amounted to 75,000 and the partner's drawings had been 10,000, 17.500 and 5,000 respectively Calculate interest on capital,​

Answer 1

Explanation:

On December 31st, 2018 after closing of accounts, the capitals of A. B and C stood in the books of firm at 2,00,000, 1,50,000 and 1,00,000. Subsequently, it was discovered that the interest on capital @ 10% per annum had been omitted. The profit for the year amounted to 75,000 and the partner's drawings had been 10,000, 17.500 and 5,000 respectively Calculate interest on capital,