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A opening capital is one lakh rupees and during the year two additional capitals of ten thousand and fifteen thousand rupees were introduced. Under fixed capital method what is closing capital if there is no capital withdrawal?

Answer and explanation

Correct answer: One lakh twenty five thousand rupees

Additional capital is permanent increase and is added even under fixed capital method. Total closing capital is one lakh twenty five thousand.

Related tags

Fixed CapitalAdditional CapitalClosing CapitalCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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