Question

A and B were partners in a firm. Their capitals at the end of the year ending on 31st March, 2021 were Rs 3,00,000 and Rs 1,50,000 respectively. During the year, B withdrew Rs 10,000 which was debited to his capital account. Profit for the year ended 31st March, 2021 was Rs 32,000 which were credited to their capital accounts. During the yea, B introduced additional capital Rs 32,000. What was B’s Capital on 1st April, 2020

Answer 1

The capital of A on 1st April, 2020 can be calculated as follows:

Capital of A on 1st April, 2020 = Capital of A on 31st March, 2021 - (Profit for the year + B's withdrawal)

= Rs 3,00,000 - (Rs 32,000 + Rs 10,000)

= Rs 2,58,000

We know that the total capital on 1st April, 2020 was Rs 4,50,000 (A's capital of Rs 3,00,000 + B's capital).

Therefore, B's capital on 1st April, 2020 = Total capital on 1st April, 2020 - A's capital on 1st April, 2020

= Rs 4,50,000 - Rs 2,58,000

= Rs 1,92,000

So, B's capital on 1st April, 2020 was Rs 1,92,000.

Step-by-step explanation: