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Under fluctuating capital method A opening capital is one lakh twenty thousand rupees additional capital is twenty thousand rupees share of profit is eighteen thousand rupees interest on capital is six thousand rupees drawings are fifteen thousand rupees and interest on drawings is one thousand rupees. What is closing capital?

Answer and explanation

Correct answer: One lakh forty eight thousand rupees

Add capital additional capital profit and interest on capital then deduct drawings and interest on drawings. The closing capital is one lakh forty eight thousand rupees.

Related tags

Fluctuating CapitalClosing CapitalNumericalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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