Question

drawings is to be ___to closing capital​

Answer 1

Explanation:

To ascertain the profit, closing capital is to be adjusted by deducting opening capital and adding drawings.

Below is the example:

Opening Capital               Rs.30000

Drawings                           Rs.5000

Closing Capital                 Rs.50000

Solution:

Closing Capital                Rs.50000

Add: Drawing                  Rs.  5000

                                         ----------------

                                         Rs.55000

Less: Opening Capital    Rs.30000

                                         ---------------

Profit during the year      Rs.25000

                                        -----------------