Question : Following is the extract of the balance sheet of A and B as of March 31st, 2021.
| Balance sheet as of March 31st, 2021 | |||
| Liabilities | Amt | Assets | Amt |
| Capital | |||
| A | 10,00,000 | ||
| B | 10,00,000 | ||
| Current a/c | |||
| A | 1,00,000 | ||
| B | 3,00,000 | ||
| Profit | 4,00,000 | ||
During the year A's drawings were Rs 30,000. Profit during the year ended March 31st, 2021 is Rs 10,00,000.
Calculate interest on capital @ 5% p.a. for the year ended March 31st, 2021.
Option 1: 50,000 each
Option 2: 60,000, 40,000
Option 3: 30,000, 20,000
Option 4: None of these
Correct Answer: 50,000 each
Solution : Answer = 50,000 each
Interest on capital
A=$10,00,000 \times \frac{5}{100}$=50,000
B=$10,00,000 \times \frac{5}{100}$=50,000.
Hence, the correct option is 1.
Related Questions
Question : Following is the extract of the balance sheet of A and B as of March 31st, 2021.
| Balance sheet as of March 31st, 2021 | |||
| Liabilities | Amt | Assets | Amt |
| Capital | |||
| A | 10,00,000 | ||
| B | 10,00,000 | ||
| Current a/c | |||
| A | 1,00,000 | ||
| B | 3,00,000 | ||
| Profit | 4,00,000 | ||
During the year A's drawings were Rs 30,000. Profit during the year ended March 31st, 2021 is Rs 10,00,000.
Calculate interest on capital @ 5% p.a. for the year ended March 31st, 2021.
Option 1: 50,000 each
Option 2: 60,000, 40,000
Option 3: 30,000, 20,000
Option 4: None of these
Question : Following is the extract from the Balance Sheet of KBC Ltd:
| Equity and liabilities | 31st March, 2020(Rs) | 31st march, 2019(Rs) |
| Surplus, i.e. Balance in Statement of Profit and loss | 8,00,000 | 5,00,000 |
| Dividend Payable | 30,000 | ........... |
Dividend Proposed for the years ended 31st March, 2019 and 2020 were Rs 35,00,000 and Rs 23,50,000 respectively. Net profit before tax and extraordinary items are
Option 1: Rs 6,00,000
Option 2: Rs 38,00,000
Option 3: Rs 26,50,000
Option 4: Rs 3,00,000
Question : Following is the extract from the Balance Sheet of KBC Ltd:
| Equity and liabilities | 31st March, 2020(Rs) | 31st march, 2019(Rs) |
| Surplus, i.e. Balance in Statement of Profit and loss | 8,00,000 | 5,00,000 |
| Dividend Payable | 30,000 | ........... |
Dividend Proposed for the years ended 31st March, 2019 and 2020 were Rs 35,00,000 and Rs 23,50,000 respectively. Net profit before tax and extraordinary items are
Option 1: Rs 6,00,000
Option 2: Rs 38,00,000
Option 3: Rs 26,50,000
Option 4: Rs 3,00,000
Question : Following is the extract from the Balance Sheet of Beta Ltd.
| Equity and liabilities | 31st March, 2020(Rs) | 31st March, 2019(Rs) |
| Equity share capital | 5,00,000 | 5,00,000 |
| 10% Redeemable Preference share capital | 5,00,000 | 5,00,000 |
| Surplus,i.e Balance in statement of profit and loss | 4,50,000 | 2,50,000 |
| Dividend payable | 20,000 | ........ |
Additional Information:
1. Proposed dividend on equity shares for the years ended 31st March, 2019 and 2020 were Rs. 1,50,000 and Rs. 1,00,000 respectively.
2. An Interim Dividend of Rs. 50,000 on Equity Shares was paid on 31st December, 2019.
Net Profit before Tax and Extraordinary Items are
Option 1: Rs 4,50,000
Option 2: Rs 5,50,000
Option 3: Rs 10,00,000
Option 4: None of the above
Question : Following is the extract from the Balance Sheet of Beta Ltd.
| Equity and liabilities | 31st March, 2020(Rs) | 31st March, 2019(Rs) |
| Equity share capital | 5,00,000 | 5,00,000 |
| 10% Redeemable Preference share capital | 5,00,000 | 5,00,000 |
| Surplus,i.e Balance in statement of profit and loss | 4,50,000 | 2,50,000 |
| Dividend payable | 20,000 | ........ |
Additional Information:
1. Proposed dividend on equity shares for the years ended 31st March, 2019 and 2020 were Rs. 1,50,000 and Rs. 1,00,000 respectively.
2. An Interim Dividend of Rs. 50,000 on Equity Shares was paid on 31st December, 2019.
Net Profit before Tax and Extraordinary Items are
Option 1: Rs 4,50,000
Option 2: Rs 5,50,000
Option 3: Rs 10,00,000
Option 4: None of the above
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