5. On March 31, 2014 after the close of accounts, the capitals of Mountain, Hill and Rock stood in the books of the firm at Rs. 4,00,000,Rs.3,00,000 and Rs. 2,00,000, respectively. Subsequently, it was discovered that the interest on capital @ 10% p.a. had been omitted. The profit for the year amounted to Rs. 1,50,000 and the partner's drawings had been Mountain: Rs. 20,000, Hill Rs. 15,000 and Rock Rs. 10,000. Calculate interest on capital.
5. On March 31, 2014 after the close of accounts, the capitals of Mountain, Hill and Rock stood in the books of the firm at Rs. 4,00,000,Rs.3,00,000 and Rs. 2,00,000, respectively. Subsequently, it was discovered that the interest on capital @ 10% p.a. had been omitted. The profit for the year amounted to Rs. 1,50,000 and the partner's drawings had been Mountain: Rs. 20,000, Hill Rs. 15,000 and Rock Rs. 10,000. Calculate interest on capital.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:15. On March 31, 2014 after the close of accounts, the capitals of Mountain, Hill
and Rock stood in the books of the firm at Rs. 4,00,000,Rs.3,00,000 and
Rs. 2,00,000, respectively. Subsequently, it was discovered that the interest
on capital @ 10% p.a. had been omitted. The profit for the year amounted to
Rs. 1,50,000 and the partner's drawings had been Mountain: Rs. 20,000, Hill
Rs. 15,000 and Rock Rs. 10,000.
Calculate interest on capital.
(Ans : Interest on Capital: Mountain, Rs.37,000; Hill, Rs.26,500; Rock, Rs.16,000)
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