Question

Aman and Bahadur are partners in a firm, and share profits and losses in the ratio of 2 : 3. The following was the balance sheet of the firm as on 31st March 2021.


Additional information:
The profit of ₹60,000 for the year ended 31st March 2021 was divided between the partners without allowing interest on capital at 10% p.a. and salary to Aman at ₹6,000 per quarter. During the year, Aman withdrew ₹20,000 and Bahadur withdrew ₹40,000.

Calculate the capital at the beginning of the year.

[0.88 marks]

• A. Aman - ₹1,20,000; Bahadur - ₹40,000
• B. Aman - ₹1,16,000; Bahadur - ₹44,000
• C. Aman - ₹96,000; Bahadur - ₹4,000
• D. Aman - ₹1,40,000; Bahadur - ₹80,000

Answer 1

The correct option is B Aman - ₹1,16,000; Bahadur - ₹44,000

Particulars	Aman	Bahadur
Capital at the end (-) Profit (+) Drawings	1,20,000 (24,000) 20,000	40,000 (36,000) 40,000
Capital at the beginning	1,16,000	44,000