Preparation of final accounts of sole proprietor

sai t

Already interest received = 7,250[given in trial balance] But we have remove interest received on investment and deposit for calculation of interest receivable on investments and deposits So Interest received =7,250 Less:Interest received 1,000 On investments And deposits. =6,250 Interest = 1,250 on Investment 15,000 [25,000×5%] =16,250 Interest on Deposits [1,50,000×10%] Interest received =6,250 Less: Interest. 16,250 Received. = 10,000[receivable or. accrued interest] On investments and deposits

sai t

Below screen shot is full question

Prasanth Kumar

Are you asking how we got 17250 in p and l account

sai t

Someone asked so I gave answer in reply

sai t

Already interest received = 7,250[given in trial balance] But we have remove interest received on investment and deposit for calculation of interest receivable on investments and deposits So Interest received =7,250 Less:Interest received 1,000 On investments And deposits. =6,250 Interest = 1,250 on Investment 15,000 [25,000×5%] =16,250 Interest on Deposits [1,50,000×10%] Interest received =6,250 Less: Interest. 16,250 Received. = 10,000[receivable or. accrued interest] On investments and deposits

Prasanth Kumar

Ok its my mistake