Question

If closing capital is * 2,50,000 and drawings during the year were * 40,000, profits *80,000, the opening capital was_____​

Answer 1

Opening Capital was  ₹ 2,10,000

Explanation:

Solution :

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

Closing Capital -------------- 2,50,000

(+) Drawings during the year ----- 40,000

(2,90,000)

(-) Profit for the year --------- 80,000

Capital at the beginning = 2,10,000

___________________________

★ Opening Capital  :

Opening Capital + 80,000 - 40,000 = 2,50,000

Opening Capital + 40,000 = 2,50,000

Opening Capital = 2,50,000 - 40,000

Opening Capital = ₹ 2,10,000

Therefore, Opening Capital was  ₹ 2,10,000

Answer 2

Given Data :

Closing capital = ₹2,50,000

Drawings during the year = ₹40,000

Profits = ₹80,000

.°. Capital at Beginning

= 2,50,000 + 40,000 - 80,000

• Capital at Beginning = ₹ 2,10,000

then,

Finding Opening Capital :

⇒ Opening Capital - 40,000 + 80,000 = 2,50,000

⇒ Opening Capital = 2,50,000 - 40,000

⇒ Opening Capital = ₹ 2,10,000

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