Question

Saloni and Mohini were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2024, Saloni’s capital was 1,50,000. During the year, she withdrew 10,000 and introduced additional capital of 32,000. For the year ended 31^st March, 2024, the firm earned a profit of 50,000. Saloni’s capital as on 1^st April, 2023, was:

• A. 1,30,000
• B. 2,02,000
• C. 1,08,000
• D. 98,000

Hint:

To calculate opening capital: Reverse all adjustments from closing capital — subtract profit & additional capital, and add back drawings.

Answer 1

The Correct Option is C

Closing Capital (31st March, 2024) = 1,50,000
Add: Drawings = 10,000
Less: Additional Capital Introduced = 32,000
Less: Share of Profit = \( \frac{3}{5} \times 50,000 = 30,000 \) \[ \text{Opening Capital} = 1,50,000 + 10,000 - 32,000 - 30,000 = 1,08,000 \]