Question

Provide 5% interest on capital and additional capital of Rs 10,000 was introduced on 1st October 2017

Posting P&L account and balance sheet

Answer 1

P and l debit side - interest on capital

Balance sheet less from capital

Answer 2

"P and l debit side - interest on capital  

Balance sheet less from capital

$(\frac { 90000\times 5 }{ 100 } )+(\frac { 10000\times 5 }{ 100 } \times \frac { 6 }{ 12 } )\quad =\quad 4750$

= 4500 + 250 = 4750"