Question

A car worth Rs. 80,000 was brought into the business by Minesh during the year. Also, Rs. 20,000 was withdrawn during the year. If closing capital is Rs. 1,00,000, what shall be the opening capital?

• A. Rs. 1,00,000
• B. Rs. 60,000
• C. Rs. 40,000
• D. Rs. 90,000

Answer 1

The correct option is C

Rs. 40,000

Opening Capital
= Closing Capital - Additional Capital + Drawings
= Rs. 1,00,000 - Rs. 80,000 + Rs. 20,000
= Rs. 40,000