Question 19 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19 Chapter 2 of +2- Part-

Question 19 Chapter 2 of +2-Part-1

19. (Interest on Capital/Journal Entry) C and D have capital of Rs.70,000 and Rs.90,000 on 1st April 2014. C made an addition of Rs.40,000 to his capital on 1st October 2014. Interest on capital is allowed @ 10% p.a. Pass journal entry for the interest on capital for the year ended 31st March 2015.

 

The solution of Question 19 Chapter 2 of +2 Part-1

: – 

 
  Particulars
   
         
  C’s Capital:      
  On 70,000 @10% for 1 year   7,000  
  On 40,000 @10% for 1/2 year   2,000 9,000
  D’s Capital:    
  On 90,000 @10% for 1 year   9,000
       

 

Journal
Date Particulars
L.F. Debit Credit
           
  Interest on Capital A/c Dr.   18,000  
  To C’s Capital A/c       9,000
  To D’s Capital A/c       9,000
  (Being interest on Capital allowed)      
         

 

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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2 Book 1 min - Question 19 Chapter 2 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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