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Following is the extract of the Balance Sheet of Neelkant and Mahadev as on 31st March, 2019. BALANCE SHEET as at 31st March, 2019 Liabilities ₹ Assets ₹ Neelkant's Capital 10,00,000 Sundry Assets 30,00,000 Mahadev's Capital 10,00,000 Neelkant's Current A/c 1,00,000 Mahadev' Current A/c 1,00,000 Profit and Loss Appropriation A/c (2018-19) 8,00,000 30,00,000 30,00,000 During the year, Mahadev's drawings were ₹ 30,000. Profits during the year ended 31st March, 2019 is ₹ 10,00,000. Calculate interest on capital 5% p.a. for the year ending 31st March, 2019.

Answer» Following is the extract of the Balance Sheet of Neelkant and Mahadev as on 31st March, 2019.
































































BALANCE SHEET

as at 31st March, 2019
Liabilities

Assets




Neelkant's Capital
10,00,000

Sundry Assets
30,00,000

Mahadev's Capital
10,00,000



Neelkant's Current A/c
1,00,000

Mahadev' Current A/c
1,00,000

Profit and Loss Appropriation A/c (2018-19)
8,00,000


30,00,000


30,00,000




During the year, Mahadev's drawings were ₹ 30,000. Profits during the year ended 31st March, 2019 is ₹ 10,00,000. Calculate interest on capital 5% p.a. for the year ending 31st March, 2019.


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