Question

3) Which of the following is correct?
a) Closing capital = Opening capital + Additional capital – Profit – Drawings
b) Closing capital = Opening capital + Additional capital – Drawings + Profit
c) Closing capital = Opening capital – Additional capital – Drawings – Loss
d) Closing capital = Additional capital + Drawings – Profit – Opening capital

Answer 1

Answer:

Profit/Loss = Closing capital + Additional capital - Drawings made - Opening capital

Answer 2

Explanation:

Closing capital = Opening capital + Additional capital – Profit – Drawings