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Dear student
statement showing the calculation of opening capital
note: interest on capital is calculated on opening capital. therefore, we firstly find the opening capital.
2) it is assuming profit is divided equally.
Regards
statement showing the calculation of opening capital
| particulars | mountain (rs) |
hill (rs) |
rock (rs) |
| clsoing capital | 4,00,000 | 3,00,000 | 2,00,000 |
| add: drawings | 20,000 | 15000 | 10,000 |
| less: profits credited | 50,000 | 50,000 | 50,000 |
| opening capital | 3,70,000 | 2,65,000 | 1,60,000 |
| interest on capital@10 % p.a. | 37,000 | 26500 | 16000 |
2) it is assuming profit is divided equally.
Regards