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?
A. N25,000 B. N24,900 C. N22,900 D. N20,000
Correct Answer: D
Explanation
Assuming the partnership maintains a fixed capital balance P capital would be the balance brought down 20,000 (that is capital without drawings)
