Question

if closing capital is Rs. 5,00,000 and drawings during the year were Rs. 50,000, profits were Rs. 80,000, the opening capital was


4,60,000

4,70,000

4,80,000

4,90,000

Answer 1

Answer:

(B) 4,70,000

Explanation:

Question:-

if closing capital is Rs. 5,00,000 and drawings during the year were Rs. 50,000, profits were Rs. 80,000, the opening capital was

Required:-

To find the closing capital

Solution:-

Closing capital = opening capital + additional capital + profit - drawings

opening capital = closing capital + drawings - profit

Opening capital = 5,00,000 + 50,000 - 80,000

Opening capital = 4,70,000