Question

A and B were partners in a firm. Their capitals at the end of the year ending on 31.3.2021 were ₹ 3,00,000 and ₹ 1,50,000 respectively. During the year B withdrew ₹ 10,000, which was debited to his capital account. Profit for the year ended 31st March, 2021 was ₹ 32,000 which was credited to their capital accounts. During the year B introduced additional capital ₹ 32,000. What was B’s capital on 1.4.2020?

विकल्प

• ₹ 1,50,000

• ₹ 1,60,000

• ₹ 1,12,000

• ₹ 1,52,000

Answer 1

₹ 1,12,000

Explanation:

Dr.	B’s Capital Account				Cr.
Date	Particulars	Amount (₹)	Date	Particulars	Amount (₹)
31.3.2021	To Drawings	10,000	1.4.2020	By Balance b/d (Balancing figure)	1,12,000
	To Balance c/d	1,50,000	31.3.2021	By Net Profit `(32,000 xx1/2)`	16,000
			31.3.2021	By Bank A/c	32,000
		1,60,000			1,60,000

The profit will be shared equally, as the ratio is not mentioned.

Opening Capital = Closing Capital + Drawing − Additional Profit − Share Profit

= 1,50,000 + 10,000 − 32,000 − 16,000

= 1,60,000 − 48,000

= 1,12,000