Use the information to answer 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
jamb 2009accounting

The correct answer is D. N20,000

Assuming the partnership maintains a fixed capital balance P capital would be the balance brought down 20,000 (that is capital without drawings)

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