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Class 12th Account chapter 1 question 18  Ts grewal


30. From the following Balance Sheet of Long and Short, calculate interest on capital @ 8% p.a. for the year ended 31st March, 2024:

BALANCE SHEET as at 31st March, 2024

LiabilitiesAssets
Long's Capital A/c1,20,000Fixed Assets3,00,000
Short's Capital A/c1,40,000Other Assets60,000
General Reserve1,00,000
Total3,60,000Total3,60,000

During the year, Long withdrew ₹ 40,000 and Short withdrew ₹ 50,000. Profit for the year was ₹ 1,50,000 out of which ₹ 1,00,000 was transferred to General Reserve.

[Ans.: Interest on Long’s Capital—₹ 10,800; Interest on Short’s Capital—₹ 13,200.]

SOLUTION :-