Question 48 Chapter 1 VK Publications Class 12 Part 2

Question 48 Chapter 1 VK Publications Class 12 Part 2 – 2021

Table of Contents

The solution of Question 48 Chapter 1 VK Publications Class 12 Part 2: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

48. You are required to prepare ‘Notes to Accounts on Finance Cost’ from the following information of Castle Ltd.:
(i) Interest paid on bank overdraft Rs. 45,000
(ii) Interest paid on Loan obtained from X Ltd. Rs.90,000
(iii) Interest paid on Fixed Deposits Rs. 72,000
(iv) Interest Received on Fixed Deposits Rs. 30,000
(v) Bank charges Rs. 8,500
(vi) Discount on Issue of Debentures written off Rs. 7,000.

The solution of Question 48 Chapter 1 VK Publications Class 12 Part 2: –

Particulars		31st March 2018Rs.

Finance Cost
Interest paid on bank overdraft		45,000
Interest paid on Loan obtained from X Ltd.		90,000
Interest paid on Fixed Deposits		72,000
Discount on Issues of Debentures written off		7,000
Finance Cost to be shown in the Statement of profit and loss		2,14,000