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B closing capital is one lakh ten thousand rupees. During the year additional capital was twenty thousand rupees interest on capital was six thousand rupees share of loss was nine thousand rupees and drawings were eleven thousand rupees. Under fluctuating method what was opening capital?

Answer and explanation

Correct answer: One lakh four thousand rupees

To find opening capital deduct additional capital and interest from closing capital and add loss and drawings. The result is one lakh four thousand rupees.

Related tags

Opening CapitalReverse CalculationFluctuating CapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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