Question

from the following details estimate capital as on 31 march 2017,capital as on 1 April 2016 410000,drawings 40000 profit during the year 50000​

Answer 1

Given data:

• Opening capital [as on 1st April, 2016] = Rs 4,10,000.
• Drawings = Rs 40,000.
• Profit for the year = Rs 50,000.

To find: The closing capital for the year ended 31st March, 2017.

Answer:

Closing capital = Opening capital - Drawings + Profit

As per the question, we have:

• opening capital = Rs 4,10,000
• drawings = Rs 40,000
• profit = Rs 50,000

Substituting these values in the formula,

Closing capital = Rs 4,10,000 - Rs 40,000 + Rs 50,000

Closing capital = Rs 4,20,000

Therefore, the closing capital for the year ended 31st March, 2017, is Rs 4,20,000.

Subsequently, to calculate the opening capital, you would perform the reverse of the calculation of the closing capital.

Opening capital = Closing capital + Drawings - Profit

Answer 2

Profit of the year = Rs. +50000

Drawings = Rs.+40000

Opening capital = Rs. - 4,10,000

Closing capital of = Rs.+420,000.

the year 31 march2017.

Hope it helps u mate .

Thank you.