If 20% is the rate of interest and interest on the Investment appearing in the Receipts side of the receipt and payments accounts is ₹5,000, then the value of the investment will be:
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹25,000.
Interest = 5,000
Interest on investment = Investment x (rate of interest/100)
Investment = Interest on investment X (100/Rate of interest)
= 5,000 X (100/20)
= ₹25,000