Question

From the following information, calculate capital at the beginning:

$\begin{array}{cc}\text{Items}& (Rs.)\\ \text{Capital at the end of the year}& 4,00,000\\ \text{Drawing made during the year}& 60,000\\ \text{Fresh capital introduced during the year}& 1,00,000\\ \text{Profit of the current year}& 80,000\end{array}$

Answer 1

Statement Showing Capital at the Beginning of the Year

$\begin{array}{cc}\text{Particulars}& \text{Amt. (Rs.)}\\ \text{Capital at the end of the year}& 4,00,000\\ (+)\text{Drawings made during the year}& \underset{–}{60,000}\\ & 4,60,000\\ (-)\text{Fresh capital introduced during the year}& \underset{–}{1,00,000}\\ & 3,60,000\\ (-)\text{Profit of the Current year}& \underset{–}{80,000}\\ \text{Capital at the beginning of the year}& \underset{–}{\underset{–}{2,80,000}}\end{array}$