Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

If 20% interest on the Investment appearing in the Receipts side of the receipt and payments accounts is Rs 5000, then the value of the investment will be:

Options:

₹10000

₹25000

₹50000

None of these

Correct Answer:

₹25000

Explanation:

Interest = 5000
Investment x (rate of interest/100) = Interest on investment
Investment = Interest on investment X (100/Rate of interest)
                   = 5000 X (100/20)
                   = ₹25000