calculation of average capital(query)

first it is assumed that in capital profit figure is already added

therefore average capital=closing capital-1/2 of profit

                                              = 500000-50000

                                              = 450000

am i right ?

but in a book the answer is rs.550000?

my dear, closing capital = opening capital + profits

i.e.5,00,000 + 1,00,000 = 6,00,000

Now, avg. capital = closing capital - 1/2 of profits 

                                 =6,00,000 - 1/2* 1,00,000

                                 = 6,00,000 - 50,000 = 5,50,000

thanks for the reply.

Friends, in continuation, u can ask me any CPT accounts question for ur June 2010 exams. I will try to give a prompt reply

Regards, CA Shakuntala Chhangani