Question

Calculate capital at the beginning when capital at the end of thr year ₹24,00,000; Drownings made during the year ₹10,000per month ; fresh capital introduce the year ₹ 4,00,000 profit of the current year 6,60,000

Answer 1

When you want to find opening capital from closing capital give the effects opposite

i.e 1)Drawings is deducted from opening capital to closing capital so it will be added .

2)Capital will be deducted

3)Profit will be deducted

So, 24,00,000 - 4,00,000 - 6,60,000 + (10000 x 12 )

= 14,60,000

So, the opening capital is 14,60,000.

Hope you will understand it.

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