question_answer

You are required to answer the following questions 35 to 38 :

PK and AK were sharing profits in the ratio of 2:3. The following was the balance sheet of the firm as at 31st March 2021:

Liabilities Amount Assets Amount Capitals: Non-current Assets 1,80,000 PK 90,000 Current Assets 20,000 AK 1,10.000 2,00,000 Creditors 10,000 2,10,000 2,10,000

The profits Rs.40,000 for the year ended 31st March 2021 were divided between the partners without allowing interest on capital 5% p.a. and commission to AK @ 1,000 per quarter.

The drawings of the partners during the year were: PK Rs.2,500 per month and AK 10,000 per quarter. Partnership deed was silent on interest on drawings.

Opening Capital of AK was:

A) 1,20,000

B) 1,22,000

C) 1,24,000

D) 1,26,000