Harshit and Aniket both are childhood friends. After completing their education, they decided to start a partnership firm. They signed a document (partnership deed) which contains all the terms and conditions. They also decided to maintain books of accounts themselves. | |||||||||||||||||||||||||
On 31st March 2021 Their Balance Sheet was as follows: | |||||||||||||||||||||||||
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During the year 2020-21 Harshit paid his brother's college fee Rs.60,000 and Aniket paid his Mother's medical bill of Rs.80,000 out of the firm's cash. | |||||||||||||||||||||||||
Profit earned by the firm during the year Rs.2,00,000. | |||||||||||||||||||||||||
Due to less knowledge of accounting they distributed profit without providing interest on capital @ 5% p.a. and without charging interest on drawings @ 12% p.a. | |||||||||||||||||||||||||
After realizing their mistake, they hired a professional accountant to maintain their accounts as per the guidelines of Partnership Act and their Partnership Deed. All mistakes were identified and rectified by the accountant. | |||||||||||||||||||||||||
Total Opening Capital of the firm as on 1st April 2020 was: |
A) 6,80,000
B) 8,20,000
C) 6,20,000
D) 8,80,000
Correct Answer: C
Solution :
6,20,000You need to login to perform this action.
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