From the following balance sheets of Brindha and Praveena who share profits and losses in
the ratio of 3:4, 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 accoun |
|
Sundry assets |
80,000 |
| Brindha |
30,000 |
|
|
| Praveena |
40,000 |
|
|
| Profit and loss appropriation A/c |
10,000 |
|
|
| |
80,000 |
|
80,000 |
On 1st July 2017, Brindha introduced an additional capital of Rs.6,000 and on 1st October 2017, Praveena introduced Rs.10,000. Drawings of Brindha and Praveena during the year were Rs.5,000 and Rs.7,000 respectively. Profit earned during the year was Rs.31,000.
