# Question 21 Chapter 2 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-21 - CH-2 - Usha +2 Book 2018 - Solution

Question 21 Chapter 2 of +2-Part-1

21. (Interest on Capital/Journal Entry) X and Y are in partnership with the ratio of 3:2. They are allowed interest on capital @12% p.a. on the opening capital and 10% p.a. on the additional capital contributed during the year. The opening capitals of X and Y on 1st April 2014 were Rs.30,000 and Rs.20,000 respectively. X, on 1st Aug 2014 made an addition of Rs.9,000 to his capital, while Y contributed Rs.27,000 on 1st October 2014 to his capital. Find out interest on capital for the year ending 31st March 2015 and pass journal entry relating thereto.

## The solution of Question 21 Chapter 2 of +2 Part-1: –

 Date Particulars X Y Interest on opening Capital @12% for one year 3,600 2,400 Additional Capital on 1st August 2014 by X: On 9,000 @10% for 8 months 600 – Additional Capital on 1st October 2014 by Y: On 27,000 @10% for 6 months – 1,350 4,200 3,750

 Journal Date Particulars L.F. Debit Credit Interest on Capital A/c Dr. 7,950 To X’s Capital A/c 4,200 To Y’s Capital A/c 3,750 (Being interest on Capital allowed)

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