Question

26. A and B are partners in the ratio of 3:2. The firm maintains Fluctuating Capital Accounts and the
of the same as on 31st March, 2020 amounted to 1,60,000 and 1,40,000 for A and B respectively
drawings during the year were 30,000 each.
As per Partnership Deed, interest on capital @ 10% p.a. on opening capitals had been provided to
Calculate opening capitals of partners given that their profit was 90,000. Show your workings o
(CBSE Samp
NK please

Answer 1

Answer:

Explanation:

To calculate the opening capital the equation is:

Closing capital +drawing-profit

As the profit of the year is 90000 and ratio of A and B is 3:2 so the share of profit is:

A will get 90000×3/5=54000

B will get 90000×2/5=36000

And the drawings of A and B are:

A:30000

B:30000

So opening capital will be:

A:closing capital +drawing-profit

Means:160000+30000-54000=136000

B's opening capital will be:

Closing capital +drawing-profit

140000+30000-36000=134000

Intrest on capital is provided on opening capital.

As intrest on capital is 10%p.a

So intrest on capital are:

A: 136000×10/100=13600

B:134000×10/100=13400