Interest on investment received during the year was of ₹5,000 for the six months. Investments was of ₹1,00,000 as on 1st April 2020. How much amount will be credited in Income & Expenditure A/c?

₹10,000

The correct answer is option 3- ₹10,000.

6 month interest = ₹5,000
So, other 6 months interest will also be ₹5,000

Total interest = ₹5,000 (received) + ₹5,000 (outstanding)
                    = ₹10,000