From the following Balance Sheet of X and Y, calculate interest on capital 5% pa. for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
From the following Balance Sheet of X and Y, calculate interest on capital 5% pa. for the year ended 31st March, 2018: During the year ended 31st March, 2018, X's drawings were Rs.10,000 and Y's drawings were Rs.30, 000. Profit for the year ended 31st March, 2018 was Rs.60,000. The amount of Reserve, i.e., Rs.40, 000 is transferred from Current Year's profit to strengthen the financial position of the firm. BALANCE SHEET as at 31st March, 2018 ₹ Assets 90,000 Sundry Assets 80,000 40,000 2,10,000 Liabilities X's Capital A/c Y's Capital A/c Reserve ₹ 2,10,000 2,10,000 From the following Balance Sheet of X and Y, calculate interest on capital 5% pa. for the year ended 31st March, 2018: During the year ended 31st March, 2018, X's drawings were Rs.10,000 and Y's drawings were Rs.30, 000. Profit for the year ended 31st March, 2018 was Rs.60,000. The amount of Reserve, i.e., Rs.40, 000 is transferred from Current Year's profit to strengthen the financial position of the firm. BALANCE SHEET as at 31st March, 2018 ₹ Assets 90,000 Sundry Assets 80,000 40,000 2,10,000 Liabilities X's Capital A/c Y's Capital A/c Reserve ₹ 2,10,000 2,10,000
Expert Answer:
Answer rating: 100% (QA)
Calculation of Interest on xs Capital Rs xs Capital as at 31st March 2018 90000 Add Drawing... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
Students also viewed these general management questions
-
A consulting firm offering a broad range of services will soon visit your college to recruit graduates. This firm has more than 20,000 professional staff in 275 offices of 11 different countries....
-
Hrudka Corp. has manufactured a broad range of quality products since 1988. The following information is available for the company's fiscal year ended February 28, 2011. 1. The company has $4 million...
-
Hrudka Corp. has manufactured a broad range of quality products since 1991. The operating cycle of the business is less than one year. The following information is available for the company's fiscal...
-
A circular transistor of 10-mm diameter is cooled by impingement of an air jet exiting a 2-mm-diameter round nozzle with a velocity of 20 m/s and a temperature of 15C. The jet exit and the exposed...
-
Add a field named Allocation to the Part table. The allocation is a number representing the number of units of each part that have been allocated to each customer. Set all Allocation values to zero....
-
a. Identify the time at which Nike recognizes revenues. Does this timing of revenue recognition seem appropriate? Explain. b. Identify the cost-flow assumption(s) that Nike uses to measure cost of...
-
A purpose of tests of controls over billing is to determine whether: a. Billed goods have been shipped. b. Sales orders agree to shipping documents. c. Sales orders have been approved by Credit...
-
Horowitz Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of 7 years,...
-
Water flows through a venturi meter. At the constricted section area is 36cm, the pressure is 11.69 N/cm, and at the main pipe area is 72cm, the pressure is 24.78 N/cm. Determine the velocities of...
-
The following is Edge Sports Repair Shop's trial balance at September 30, 2014, the company's fiscal year end: Additional information: 1. Service revenue earned but not recorded at September 30,...
-
If there is at least one state that does not fit the pattern of having a higher average percentage of returned sales in January than the rest of the year, what would your next diagnostic analysis...
-
Suppose we roll a die, let X be the number we get. Suppose p(x) = P(X = 2) is such that p(1).1, p(2) = .1, p(3) = .1, p(4) = .2, p(5) = .2, p(6) = .3. (1) Calculate E(X) and Var(X). == == (2) Suppose...
-
Asset A: The asset will generate cash flows of $1,500 per year beginning one year from now and will continue paying out the same annual amount forever. Asset B: The asset will generate cash flows of...
-
Company has 40 million commons stock shares outstanding with a market capitalization of $2.5 billion. It also has 850 million in debt outstanding. CEO made decision to recapitalize the company by...
-
Raven purchases a new cell phone for $800 that depreciates annually. The value of her cell phone per year, x, can be modeled by the exponential function f(x) = 800(0.82)x. What is the range of this...
-
The normal equation for the linear system 8 2 2 1 1 Xx 1 3 5 1 = 2 1 2 1 is ...
-
Marked ou Flag question Sell or Process Further Great Lakes Boat Company manufactures sailboat hulls at a cost of $4,200 per unit. The hulls are sold to boat yards for $4,800. The company is...
-
1. As a general strategy, would you recommend that Carl take an aggressive approach to capacity expansion or more of a wait-and-see approach? 2. Should Carl go with the option for one facility that...
-
What are the advantages and limitations of return on investment (ROI) as a performance measure?
-
What are the distinguishing characteristics of capital-budgeting decisions?
-
Raddington Industries is a diversified manufacturer with several divisions, including the Reigis Division. Raddington monitors its divisions on the basis of both unit contribution and return on...
-
Reflect on how the 'pair-wise' criterion system could be applied in your organisation. Against which criterion would you carry out prioritisation?
-
Why should projects be linked to the organisation's Strategic Plan?
-
Using the BCG matrix illustrated in Figure 4. 13 review the investments from the list below. Investment $\mathrm{A}$ is a new product that has been released into the industry. It seems to be...
Study smarter with the SolutionInn App