From the following balance sheets of Subha and Sudha who share profits and losses equally, calculate interest on capital at 6% p.a. for the year ending 31st December 2017.
Balance sheet as on 31st December 2017
| Liabilities |
Rs. |
Assets |
Rs. |
| Capital accounts: |
|
Fixed assets |
30,000 |
| Subha |
15,000 |
Current assets |
20,000 |
| Sudha |
20,000 |
|
|
| |
15,000 |
|
|
| |
50,000 |
|
50,000 |
Drawings of Subha and Sudha during the year were Rs.2,500 and Rs.3,500 respectively. Profit earned during the year was Rs.15,000.
