Outstanding interest means the interest which is accrued but not received during the current period.
Here the total interest due on 18% investment = 18% of 1,00,000 = Rs. 18,000 And the interest received = Rs. 15,000
Thus interest outstanding = 18,000 – 15,000 = Rs. 3000

According to annuity method, the purchase of the asset concerned is considered an investment of capital,
earning interest at certain rate. The cost of the asset and also interest thereon are written down annually
by equal installments until the book value of the asset is reduced to nil or its bread up value at the end of
its effective life. The annual charge to be made by way of depreciation is found out from annuity tables.
The annual charge for depreciation will be credited to asset account and debited to depreciation account,
while the interest will be debited to asset account and credited to interest account.
Thus depreciation to be charged = lease value × the annuity = 1,00,000 × 0.282012 = Rs. 28,201

Historical cost is a measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when acquired by the company.
Here the historical cost of the closing inventory will be = 1,000 × 3.25 = Rs. 3,250
And the selling cost per unit = Rs. 4.25
So the selling price of the closing inventory will be = 1,000 × 4.25 = Rs. 4,250

A suspense account is an account in the general ledger in which amounts are temporarily recorded. The suspense account is used because the proper account could not be determined at the time that the transaction was recorded.
When the proper account is determined, the amount will be moved from the suspense account to the proper account.
(1) When return inward was undercast dr side of trial balance must be showing Rs. 150 less,thus suspense account would have been debited
(2) When return outward book was overcasted then also debit balance of the trial balance must be showing Rs. 1,000 less so suspense account would have been debited
(3) When salaries was posted twice the credit side of the trial balance must be showing Rs. 1,500 less and so suspense account would have been credited
Thus the balance of suspense account would be showing 1,500 (Cr) – 1,000 (Dr) – 150 (Dr) = 350 (Cr)

Gross profit is a company’s revenue minus its cost of goods sold. Gross profit is a company’s residual
profit after selling a product or service and deducting the cost associated with its production and sale.
Cost of goods sold is the direct costs attributable to the production or purchase of the goods sold by a
company. It excludes indirect expenses such as distribution costs.
Cost of goods sold in the above case = opening stock + purchases + carriage-closing stock = 20,000 + 1,00,000 + 2,000 – 25,000 = 97,000
Gross profit = sales – cost of goods sold = 1,50,000 – 97,000 = Rs. 53,000

Holder of debentures issued as collated security is entitled to interest on amount of loan only.