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Under fluctuating capital method B's opening capital is ₹250000. Profit share is ₹60000 interest on capital is ₹20000 drawings are ₹70000 and interest on drawings is ₹5000. What is the closing capital?

Answer and explanation

Correct answer: ₹255000

Credit adjustments are ₹80000 and debit adjustments are ₹75000. Capital increases by ₹5000 to ₹255000.

Related tags

PartnershipFluctuating CapitalCapital AccountAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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