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?
- N25,000
- N24,900
- N22,900
-
N20,000
The correct answer is: 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)