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A and B our partners in the ratio of 3:2 the form maintains fluctuating capital account and balance is of the same as on 31st March 2020 amount 160000 and 140000 for A and B respectively they are drawings during the year 30000 each as per partnership deed interest in capital at the rate 10% per annum on opening capital had been provided to them calculate opening capital of partner given that the profit was rupees 90000 show your working clearly?
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A and B our partners in the ratio of 3:2 the form maintains fluctuatin...
Solution:

Given:
Ratio of partnership between A and B = 3:2
Capital account balance as on 31st March 2020 for A = Rs. 160,000
Capital account balance as on 31st March 2020 for B = Rs. 140,000
Drawings during the year for A and B = Rs. 30,000 each
Interest on capital at the rate of 10% per annum
Profit for the year = Rs. 90,000

To find:
Opening capital of partners

Calculation:
Step 1: Calculate the total drawings for the year
Total drawings for the year = Drawings for A + Drawings for B
Total drawings for the year = Rs. 30,000 + Rs. 30,000
Total drawings for the year = Rs. 60,000

Step 2: Calculate the total interest on opening capital for A and B
Interest on opening capital for A = (10/100) x Rs. 160,000 = Rs. 16,000
Interest on opening capital for B = (10/100) x Rs. 140,000 = Rs. 14,000
Total interest on opening capital = Rs. 16,000 + Rs. 14,000
Total interest on opening capital = Rs. 30,000

Step 3: Calculate the total profit for the year after adjusting for interest on capital and drawings
Total profit for the year = Profit for the year - (Total interest on opening capital + Total drawings for the year)
Total profit for the year = Rs. 90,000 - (Rs. 30,000 + Rs. 60,000)
Total profit for the year = Rs. 90,000 - Rs. 90,000
Total profit for the year = Rs. 0

Step 4: Calculate the total capital as on 1st April 2019
Total capital as on 1st April 2019 = Total capital as on 31st March 2020 - Total profit for the year
Total capital as on 1st April 2019 for A = Rs. 160,000 - Rs. 0 = Rs. 160,000
Total capital as on 1st April 2019 for B = Rs. 140,000 - Rs. 0 = Rs. 140,000

Step 5: Calculate the opening capital of partners
Opening capital of A = (3/5) x Rs. 160,000 = Rs. 96,000
Opening capital of B = (2/5) x Rs. 140,000 = Rs. 56,000

Therefore, the opening capital of A and B are Rs. 96,000 and Rs. 56,000 respectively.
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A and B our partners in the ratio of 3:2 the form maintains fluctuating capital account and balance is of the same as on 31st March 2020 amount 160000 and 140000 for A and B respectively they are drawings during the year 30000 each as per partnership deed interest in capital at the rate 10% per annum on opening capital had been provided to them calculate opening capital of partner given that the profit was rupees 90000 show your working clearly?
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A and B our partners in the ratio of 3:2 the form maintains fluctuating capital account and balance is of the same as on 31st March 2020 amount 160000 and 140000 for A and B respectively they are drawings during the year 30000 each as per partnership deed interest in capital at the rate 10% per annum on opening capital had been provided to them calculate opening capital of partner given that the profit was rupees 90000 show your working clearly? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B our partners in the ratio of 3:2 the form maintains fluctuating capital account and balance is of the same as on 31st March 2020 amount 160000 and 140000 for A and B respectively they are drawings during the year 30000 each as per partnership deed interest in capital at the rate 10% per annum on opening capital had been provided to them calculate opening capital of partner given that the profit was rupees 90000 show your working clearly? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B our partners in the ratio of 3:2 the form maintains fluctuating capital account and balance is of the same as on 31st March 2020 amount 160000 and 140000 for A and B respectively they are drawings during the year 30000 each as per partnership deed interest in capital at the rate 10% per annum on opening capital had been provided to them calculate opening capital of partner given that the profit was rupees 90000 show your working clearly?.
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