The capital in the beginning of the accounting year is ascertained by preparing ______.

closing statement of affairs

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cash account

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statement of profit or loss

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opening statement of affairs

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Solution

The correct option is D opening statement of affairs
D. Opening statement of affairs.
We need to prepare the opening statement of affairs which contains the opening balances of the assets and liabilities. It is usually prepared where the books of accounts are kept as per the single entry system. It is prepared in the same manner as a Balance Sheet is prepared.

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