JAMB - Accounts Principles Of Accounts (2009 - No. 36)

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

Explanation

Assuming the partnership maintains a fixed capital balance P capital would be the balance brought down 20,000 (that is capital without drawings)

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