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Aan and Mohan are partners sharing profits and losses in the ratio of 3:2. The firm maintains fluctuating Capital Accounts and the balance in their Capital Accounts as on 31st March, 2023 was 4,00,000 and 3,50,000 respectively. Drawings during the year were * 75,000 each. As per Partnership Deed interest on Capital @ 10% p.a. on Opening Capital had been allowed to them. Calculate Opening capital of partners given that net profit during the year 2022-23 was ₹225000.show your working.?
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Aan and Mohan are partners sharing profits and losses in the ratio of ...
Solution:

Given data:
- Aan and Mohan are partners sharing profits and losses in the ratio of 3:2.
- Balance in their Capital Accounts as on 31st March, 2023 was 4,00,000 and 3,50,000 respectively.
- Drawings during the year were ₹75,000 each.
- As per Partnership Deed interest on Capital @ 10% p.a. on Opening Capital had been allowed to them.
- Net profit during the year 2022-23 was ₹225000.

Calculation of interest on capital:
- Interest on Aan's capital = 10% of 4,00,000 = ₹40,000
- Interest on Mohan's capital = 10% of 3,50,000 = ₹35,000

Calculation of profits:
- Total drawings = ₹75,000 + ₹75,000 = ₹1,50,000
- Net profit = ₹225,000
- Add back interest on capital = ₹40,000 + ₹35,000 = ₹75,000
- Adjust drawings = ₹1,50,000 - ₹75,000 = ₹75,000
- Adjust interest on capital = ₹225,000 - ₹75,000 = ₹150,000

Calculation of capital as on 1st April 2022:
- Let the opening capital of Aan be x
- Then the opening capital of Mohan = (2/3)x
- Total opening capital = x + (2/3)x = (5/3)x
- Interest on Aan's opening capital = 10% of x
- Interest on Mohan's opening capital = 10% of (2/3)x = (1/3)x
- Total interest on opening capital = (10/100) * (5/3)x = (1/6)x
- Total capital as on 1st April 2022 = (5/3)x + (1/6)x = (11/6)x

Calculation of opening capital of partners:
- Let the total opening capital be y
- Then, (5/8)y = 4,00,000 (as Aan's share is 3/5 and Mohan's share is 2/5 of total capital)
- Therefore, y = (4,00,000 * 8/5) = ₹6,40,000
- Total interest on opening capital = (1/6)x = (1/6) * 6,40,000 = ₹1,06,667
- Total capital as on 1st April 2022 = (11/6)x = (11/6) * (3,50,000/2) = ₹6,04,167 (as Mohan's share is 2/5 of total capital)
- Therefore, Aan's opening capital = total capital - Mohan's opening capital = ₹6,40,000 - ₹6,04,167 = ₹35,833

Final Answer:
The opening capital of Aan and Mohan were ₹35,833 and ₹3,04,167 respectively.
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Aan and Mohan are partners sharing profits and losses in the ratio of 3:2. The firm maintains fluctuating Capital Accounts and the balance in their Capital Accounts as on 31st March, 2023 was 4,00,000 and 3,50,000 respectively. Drawings during the year were * 75,000 each. As per Partnership Deed interest on Capital @ 10% p.a. on Opening Capital had been allowed to them. Calculate Opening capital of partners given that net profit during the year 2022-23 was ₹225000.show your working.?
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Aan and Mohan are partners sharing profits and losses in the ratio of 3:2. The firm maintains fluctuating Capital Accounts and the balance in their Capital Accounts as on 31st March, 2023 was 4,00,000 and 3,50,000 respectively. Drawings during the year were * 75,000 each. As per Partnership Deed interest on Capital @ 10% p.a. on Opening Capital had been allowed to them. Calculate Opening capital of partners given that net profit during the year 2022-23 was ₹225000.show your working.? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Aan and Mohan are partners sharing profits and losses in the ratio of 3:2. The firm maintains fluctuating Capital Accounts and the balance in their Capital Accounts as on 31st March, 2023 was 4,00,000 and 3,50,000 respectively. Drawings during the year were * 75,000 each. As per Partnership Deed interest on Capital @ 10% p.a. on Opening Capital had been allowed to them. Calculate Opening capital of partners given that net profit during the year 2022-23 was ₹225000.show your working.? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Aan and Mohan are partners sharing profits and losses in the ratio of 3:2. The firm maintains fluctuating Capital Accounts and the balance in their Capital Accounts as on 31st March, 2023 was 4,00,000 and 3,50,000 respectively. Drawings during the year were * 75,000 each. As per Partnership Deed interest on Capital @ 10% p.a. on Opening Capital had been allowed to them. Calculate Opening capital of partners given that net profit during the year 2022-23 was ₹225000.show your working.?.
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