Use the information to answer questions 40 and 41.
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
Answer is D
