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In a partnership, if the opening capital is Rs 40,000 and additional capital introduced later is Rs 10,000, and there is no withdrawal from capital, what is the total capital?

Answer and explanation

Correct answer: Rs 50000

Total capital = opening capital + additional capital − withdrawals. Since withdrawals = 0, total capital = Rs 40,000 + Rs 10,000 = Rs 50,000. Option D (Rs 40,000) is incorrect because it ignores the additional capital. Exam tip: always check for any withdrawals or drawings first; if none, simply add additional capital to opening capital.

Related tags

Additional CapitalNumericalTotal CapitalPartnership AccountsCapital AccountCapital AccountsPartnership Accounts Basic ConceptsAccountancy

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