Question

A person started a business with capital of $50,000$ and he takes loan from his relative Rs. $5,000$. Profit for the year is Rs. $10,000$ and drawings Rs. $9,000$. What will be the amount of closing capital?

• A. Rs. $60,000$
• B. Rs. $51,000$
• C. Rs. $56,000$
• D. Rs. $46,000$

Answer 1

The correct option is B Rs. $51,000$

Opening capital 50,000

Add:- Additional capital 5,000

Profit for the year 10,000

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65,000

Less:- Drawings (9,000)

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Capital at the end of the year 56,000