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Under fixed capital method A has capital of Rs 90000 and a debit balance of Rs 8000 in current account. If A brings additional capital of Rs 20000 what is As total net position?

Answer and explanation

Correct answer: Rs 102000 credit

Fixed capital becomes Rs 110000 after adding additional capital of Rs 20000. Deducting debit current balance gives net claim of Rs 102000 credit.

Related tags

Fixed CapitalCurrent AccountNet PositionCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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