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Under fluctuating capital method opening capital is Rs 125000. Salary is Rs 15000 profit share is Rs 22000 drawings are Rs 18000 and interest on drawings is Rs 1500. What will be closing capital?

Answer and explanation

Correct answer: Rs 142500

Salary and profit are added while drawings and interest on drawings are deducted. Rs 125000 plus Rs 37000 minus Rs 19500 equals Rs 142500.

Related tags

Fluctuating CapitalClosing CapitalAdjustmentsCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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