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| Accounting for Partnership : Basic Concepts (Accountancy) | Close X |
Following is the extract of the Balance Sheet of, Neelkant and Mahdev as on March 31, 2007:
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Balance Sheet as at March 31, 2007
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Amount |
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Amount |
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Liabilities |
Rs |
Assets |
Rs |
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Neelkant’s Capital |
10,00,000 |
Sundry Assets |
30,00,000 |
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Mahadev’s Capital |
10,00,000 |
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Neelkant’s Current Account |
1,00,000 |
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Mahadev’s Current Account |
1,00,000 |
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Profit and Loss Apprpriation |
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(March 2007) |
8,00,000 |
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30,00,000 |
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30,00,000 |
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During the year Mahadev’s drawings were Rs 30,000. Profits during 2007 is Rs 10,00,000. Calculate interest on capital @ 5% p.a for the year ending March 31, 2007.