Question

26. A and B are partners in the ratio of 3 : 2. The firm maintains Fluctuating Capital Accounts and the balance
of the same as on 31st March, 2020 amounted to 1,60,000 and 1,40,000 for A and B respectively. Their
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 them
Calculate opening capitals of partners given that their profit was 90,000. Show your workings clearly.
ICBSE Sample Paper 2020​

please explain how you got to the amounts of IOC and other things as well.. would be of great help

Answer 1

Answer:

1,23,636.36  &  1,21,818.18

Explanation

 A B

Closing       1,60,000.00   1,40,000.00

Less :-  Profit         -54,000.00   -36,000.00

Add :-  Drawings  30,000.00    30,000.00

 

    Balance         1,36,000.00      1,34,000.00

(This amount is inclusive of interest)  

 

Interest          12,363.64       12,181.82

(136000*10%/110% & other)  

 

Opening   1,23,636.36   1,21,818.18