From the following Balance Sheet of Long and Short, calculate interest on capital @ 8% p.a. for the year ended 31st March, 2019.  Balance sheet as at 31st March, 2019.

Liabilities Rs.Assets Rs.
Long’s Capital A/c1,20,000Fixed Assets3,00,000
Short’s Capital A/c 1,40,000Other Assets   60,000
General Reserve 1,00,000 
 3,60,000 3,60,000

During the year, Long withdrew Rs. 40,000 and Short withdrew Rs. 50,000. Profit for the year was Rs. 1,50,000 out of which Rs. 1,00,000 was transferred to General Reserve.


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