Question

To ascertain the profit, closing capital is to be adjusted by deducting ……….. And adding……………..​

Answer 1

Answer:

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

Explanation:

Below is the example:

Opening Capital Rs.30000

Drawings Rs.5000

Closing Capital Rs.50000

Solution:

Closing Capital Rs.50000

Add: Drawing Rs. 5000

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Rs.55000

Less: Opening Capital Rs.30000

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Profit during the year Rs.25000

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Hope it will help you ❤️