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Under fixed capital method As capital is Rs 150000 and current account has Rs 12000 debit balance. During the year A brought additional capital of Rs 25000 received salary of Rs 16000 and made drawings of Rs 9000. What is As net closing position?

Answer and explanation

Correct answer: Rs 170000 credit

Capital becomes Rs 175000 and current account has Rs 5000 debit balance. Therefore net claim is Rs 170000 credit.

Related tags

Fixed CapitalCurrent AccountNet PositionCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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