A and B are partners in the a busines and their capitals at the end of the year were Rs, 7,00.000 and Rs. 6,00,000 respectively Calculate their openin capitals considering the following information :
(a) Drawings of A and B for the year were Rs. 75,000 and Rs. 50,000 respectively
(b) B introduced capital of Rs. 1,00,00 during the year .
( c) interest on capital credited to the capial accounts of A and B were Rs. 15 ,000 and Rs. 10,000 respectively .
(d) interest on drawig debited to the capital Accounts of A and B were Rs. 7,500 and Rs. 5,000 respectively .
( e) share of profit creadited to capital Accounts was Rs. 1,00,000 each .
Answers
Answer:
CALCULATION OF OPENING CAPITAL :
Particulars A B
Closing capital 7,00,000 6,00,000
Add:-Drawings 75,000 50,000
Interest on drawings 7500 5000
Share of loss 20,000 20,000
Less: capital Introduced Nil (1,00,000)
Interest on capital (15,000) (10,000)
Total 7,87,500 5,65,000