If the capital of the partnership is unfixed; what is K’s current accounts?

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

A. N11,950
B. N10,950
C. N20
D. N 0
E. NO OPTION

Correct Answer:

Option E – NO OPTION

Explanation

K capital contributed = 10000

10000 – 1,000 – 2000 – 100 – 10 = 6880