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Under fluctuating capital method A opening capital is two lakh rupees. During the year additional capital is twenty five thousand rupees interest on capital is ten thousand rupees profit share is eighteen thousand rupees drawings are twenty two thousand rupees and interest on drawings is three thousand rupees. What is closing capital?

Answer and explanation

Correct answer: Two lakh twenty eight thousand rupees

Add additional capital interest on capital and profit and deduct drawings and interest on drawings. Correct closing capital is two lakh twenty eight thousand rupees.

Related tags

Fluctuating CapitalClosing CapitalHardCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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