Question 9 Chapter 2 – Unimax Class 12 Part 1 – 2021

Question 9Chapter 2 - Unimax Class 12 Part 1 - 2021

Question 9 Chapter 2 – Unimax Class 12 Part 1

9. X and Y have capitals of Rs. 30000 and Rs. 20000 respectively as on 1st April, 2020. Interest on capital is allowed @ 10% per annum. Find out interest on capital for year ended on 31st March, 2021 and pass necessary Journal entry for interest on capital.

The solution of Question 9 Chapter 2 – Unimax Class 12 Part 1:

Date Particulars   L.F. Debit Credit
  Interest on capital A/c Dr.   5,000  
  To X’s Capital A/c       3,000
  To Y’s Capital A/c       2,000
  (Being Interest Provided on Capitals)        

Working Notes

(1) X’s Capital = Rs. 30,000
Interest on Capital = Rs. 30,000 x 10% (For one year)
  = Rs. 3,000
(2) Y’s Capital = Rs. 20,000
Interest on Capital = Rs. 20,000 x 10% (For one year)
  = Rs. 2,000

https://tutorstips.com/not-for-profit-organisations/

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

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

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Leave a Reply

Your email address will not be published. Required fields are marked *