Dev withdrew Rs. 10,000 on 15th day of every month. Interest on drawings was to be charged @ 12% per annum. Calculate interest on Dev’s drawings. (C.B.S.E. 2019)

SOLUTION Dev Total Drawings = Rs. 10,000 x 12 = Rs. 1,20,000Interest on Dev's Drawings = Rs. 1,20,000 x 12 / 100 x 6 / 12* = Rs. 7,200.Average Period…

Continue ReadingDev withdrew Rs. 10,000 on 15th day of every month. Interest on drawings was to be charged @ 12% per annum. Calculate interest on Dev’s drawings. (C.B.S.E. 2019)

Distinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the Basis of Credit Balance. (Al 2017, COSE 2019)

SOLUTION Fixed Capital Account always shows a credit (positive) balance, while Fluctuating Capital Account may show debit (negative) or credit (positive)'balance.

Continue ReadingDistinguish between ‘Fixed Capital Account’ and ‘Fluctuating Capital Account’ on the Basis of Credit Balance. (Al 2017, COSE 2019)