Class 12th Account chapter 1 question 32  solution (ts grewal)

32. Moli and Bholi contribute ₹ 20,000 and ₹ 10,000 respectively towards capital. They decide to allow interest on capital @ 6% p.a. Their respective share of profits is 2 : 3 and profit for the year is ₹ 1,500. Show distribution of profits:

(i) When there is no agreement except for interest on capitals; and

(ii) When there is an agreement that the interest on capital is a charge.

[Ans.: (i) Interest on Capital: Moli—₹ 1,000; Bholi—₹ 500;

  (ii) Loss: Moli—₹ 120; Bholi—₹ 180.]     

    SOLUTION :-