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In the answer why half of the amount withdrawn by the partners is added and half of the profits were subtracted???

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Gowshika LT

Gowshika LT

CA Foundation

30K+

19-Jul-20 11:57

13

Answers (2)

Average Capital Employed =(opening capital employed + closing capital employed)/2 or alternatively Average Capital Employed = Capital Employed + 1/2 drawings â?? ½ Current Yearâ??s Profit (as the assumption is drawings and profits are done or earned uniformly over the year)


sudha reddy

sudha reddy

Moderator

19-Jul-20 18:08

Thank u


Gowshika LT

Gowshika LT

CA Foundation

30K+

19-Jul-20 18:24