Question

A and B are partners in ratio 3:2. The firm maintains fluctuating capital accounts and the balance of the se asnon 31st March 2020 amounted to rs. 1,60,000 and 1,40,000 for A and B respectively. Their drawings during the year were 30000 each. As per the 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 rs. 90,000. Show your workings clearly.​

Answer 1

Answer:

Opening capital = closing capital + drawings - profit

A. ........ B

closing capital 160000. 140000

(+) drawing. 30000. 30000

(-) profit. 54000. 36000

opening capital. 136000. 134000

So interest on capital is

A. 136000*10/100=13600

B. 134000*10/100=. 13400