Question

Read the following hypothetical situation and answer the question:

Keshav and Hitesh are partners sharing profits and losses in the ratio of 3 : 2. On 31st March, 2023 after division of profit of ₹ 15,000, their capitals were ₹ 55,000 and ₹ 45,000, respectively. During the year, Keshav's drawings were ₹ 1,500 at the beginning of each quarter and Hitesh withdrew ₹ 9,000 on 1st November, 2022. After the final accounts have been prepared, it was discovered that interest on capital @ 5% p.a. and interest on drawings @ 8% p.a. have not been taken into consideration.

Opening capital of Keshav was ______.

Options

• ₹ 35,000

• ₹ 39,000

• ₹ 43,000

• ₹ 52,000

Answer 1

Opening capital of Keshav was ₹ 52,000.

Explanation:

Total drawings made by Keshav = (1,500 × 4) = ₹ 6,000

Keshav's share in profits = `15,000 × 3/5`

= ₹ 9,000

Opening capital of Keshav = Closing Capital + Drawings made by him − Profit transferred

= 55,000 + 6,000 − 9,000

= ₹ 52,000