Drawings 9,000, Profit for the year 15,000, Closing Capital 42,000. Calculate the Opening
Capital.
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Answer:
Given :
- Drawings = 9,000
- Profit of the year = 15,000
- Closing Capital = 42,000
To find :
- Opening Capital = ?
Explanation :
Closing Capital ⟶ 42,000
Add : Drawings ⟶ 9000
Less : Profit ⟶ 15,000
_________________________
Opening Capital ⟶ 36,000
So, Opening Capital = 36,000
Working Note :
Closing Capital + Drawings - Profit of the year = Opening Capital
= 42,000 + 9000 = 51,000
= 51,000 - 15,000 = 36,000
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