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A and B must maintain equal capital balances. A's capital is ₹52,000 and B's capital is ₹60,000. How much should B withdraw to make both capitals equal?

Answer and explanation

Correct answer: Eight thousand rupees

The governing concept is equalisation of fixed or agreed capital balances. A's capital is ₹52,000, so B must reduce his ₹60,000 balance to ₹52,000. The required withdrawal is calculated as ₹60,000 − ₹52,000 = ₹8,000. Therefore, option A is correct. ₹52,000 is the target balance, while ₹60,000 is B's original balance, not the withdrawal.

Related tags

Equal CapitalWithdrawalNumericalCapital AccountsPartnership AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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