Question

Opening capital = Rs. 1,00,000 , Drawings = Rs. 20,000 , Loss for the year = Rs. 30,000 , Additional capital introduced during the year = Rs. 20,000. What shall be the closing capital ?

• A. Rs. 90,000
• B. Rs. 70,000
• C. Rs. 80,000
• D. Rs. 1,00,000

Answer 1

The correct option is B

Rs. 70,000

Closing capital
= Opening Capital - Drawings + Additional Capital - Loss for the year

= Rs. 1,00,000 - Rs. 20,000 + Rs. 20,000 - Rs. 30,000

= Rs. 70,000.