Question

Drawing RS.15000,profit for the year RS.25000,closing capital RS.70000.calculate the opening capital.​

Answer 1

Explanation:

Given :-

Drawing = RS.15,000,

profit for the year = RS.25,000,

closing capital = RS.70,000.

Find :-

calculate the opening capital.

Profit = Closing capital +Drawing - Opening Capital

25,000 = 70,000 + 15,000 - Opening Capital

25,000 = 85,000 - Opening Capital

Opening Capital = 85,000 - 25,000

Opening Capital = 60,000

Hence, Opening Capital = Rs. 60,000

Answer 2

Explanation:

Solution :

Particular ------------------- (Amount ₹)

Closing Capital --------------- 70,000

(Add)  Drawings -------------- 15,000

(85,000)

(Less) Profit for the year --------- 25,000

Opening Capital = 60,000

___________________________

★ Opening Capital  :

Opening Capital + Profit - Drawings = Closing Capital

Opening Capital + 25,000 - 15,000 = 70,000

Opening Capital + 10,000 = 70,000

Opening Capital = 70,000 - 10,000

Opening Capital = 60,000

Therefore, Opening Capital =  ₹ 60,000