Use the information to answer the question below
Capital balances b/d:…..P………….N20,000
……………………..K………….N10,000
Drawings:……………..P………….N2, 000
……………………..K………….N1, 000
Share of profits:………K………….N4, 000
……………………..K………….N2, 000
Salary………………..P………….N1, 000
Interest on drawings:…..K………….N100
……………………..K………….N20
Assuming that the partnership maintains a fixed capital, what is P’s closing capital?
- A.
N25,000 - B.
N24,900 - C.
N22,900 - D.
N20,000
Correct Answer: Option D
Explanation
Assuming the partnership maintains a fixed capital balance P capital would be the balance brought down 20,000 (that is capital without drawings)