Calculate Closing Capital:
Opening Capital ₹ 90,000; Profit for the year ₹ 25,000; Drawings ₹ 17,000. During the year proprietor sold ornaments of his wife for ₹ 40,000 and invested the same in business.

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Solution

$\begin{array}{l} Closing Capital + Drawings - Additional Capital - Opening Capital = Profits \\ Closing Capital = Opening Capital+ Additional Capital + Profits - Drawings \\ Closing Capital = 90,000 + 4 0,000 + 2 5,000 - 17,000 \\ Closing Capital = Rs 1,38,000 \end{array}$

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Calculate Closing Capital: Opening Capital ₹ 90,000; Profit for the year ₹ 25,000; Drawings ₹ 17,000. During the year proprietor sold ornaments of his wife for ₹ 40,000 and invested the same in business.

Closing Capital + Drawings - Additional Capital - Opening Capital = ProfitsClosing Capital = Opening Capital+ Additional Capital + Profits - DrawingsClosing Capital = 90,000 + 40,000 + 25,000 - 17,000 Closing Capital = Rs 1,38,000

Calculate Closing Capital:
Opening Capital ₹ 90,000; Profit for the year ₹ 25,000; Drawings ₹ 17,000. During the year proprietor sold ornaments of his wife for ₹ 40,000 and invested the same in business.

$\begin{array}{l} Closing Capital + Drawings - Additional Capital - Opening Capital = Profits \\ Closing Capital = Opening Capital+ Additional Capital + Profits - Drawings \\ Closing Capital = 90,000 + 4 0,000 + 2 5,000 - 17,000 \\ Closing Capital = Rs 1,38,000 \end{array}$