Question

31. Ram mohan commenced business
with capital of Rs 150000. At the end
of the year , his assets were RS
250000 and creditors were of rs
25000. his closing capital and loss of
the year will be ...... *
225000 and 75000
O 275000 and 75000
O 275000 and 50000
O 275000 and 125000​

Answer 1

Answer:

Mark as brainliest!!!

Explanation:

Calculation of Capital balance in the beginning:  

Particulars Ram  Mohan  

Capitals at the end of the year 24000  18000  

Less: Profit already credited (8000) (8000)  

Add: Drawings already debited 4000  6000  

Capital at the beginning of the year  20000  16000  

Note: Interest on capital is always calculated on the opening balance of the partner's capital.

Ram's interest on capital= 20000 * 5/100

                                        = 1000

Mohan's interest on capital= 16000 * 5/100

                                            = 800