If B's capital is fifty thousand rupees and drawings are eight thousand rupees, what will be the remaining capital under the fluctuating method?

Correct answer: Forty two thousand rupees

Under the fluctuating capital method drawings are deducted directly from the partner's capital. So remaining capital = opening capital − drawings = 50,000 − 8,000 = 42,000 rupees. Option D (50,000) is wrong because it ignores the deduction of drawings; B (58,000) is incorrect because it adds rather than subtracts; C (8,000) is just the amount of drawings, not the remaining capital. Exam tip: whenever the question states 'fluctuating capital', always subtract drawings from capital unless told otherwise.