Partnership Video #5 | How to calculate Opening Capital | Partnership Accounting |

Practice Question:
A and B are partners sharing profits in the ratio of 5 : 3. Their capital balances as on 31st March 2019 were ₹ 1,00,000 and ₹ 85,000 respectively. They have distributed profit for the year ended 31st March 2019 ₹ 40,000 without providing interest on capital @ 9% per annum. A has introduced a fresh capital of ₹ 20,000 on 1st Oct. 2018. They have drawn ₹ 6,000 and ₹ 8,000 during the year for personal use. Calculate opening capital and interest on capital.
Ans. Opening capital: A ₹61,000 and B ₹ 78,000
Interest on capital: A ₹ 6,390 (5,490 + 900) and B ₹ 7,020

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