Question

Opening capital-400000 opening liablities- 200000 additional capital- 200000 drawings 120000 closing assetgd 1200000 find closing capital and profit

Answer 1

Answer:

Closing Capital = 10,00,000

Profit = 5,20,000

Explanation:

Profit = Closing Capital + Drawings - Additional Capital - Opening Capital

Closing capital = Total assets - External Liabilities

[ For the purpose of this question we assume that opening liabilities = closing liabilities]

Closing Capital = 12,00,000 - 2,00,000 = 10,00,000

Profit = 10,00,000 + 1,20,000 -2,00,000 - 4,00,000

         = 5,20,000

Hope this answers your question.

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