During the year proprietor sold ornaments of his wife for Rs. 40,000 and invested the same in the business.

Question

| Calculate Closing Capital: | Rs. |
| Opening Capital | 3,40,000 |
| Profit for the year | 2,40,000 |
| Drawings | 1,40,000 |

During the year proprietor sold ornaments of his wife for Rs. 40,000 and invested the same in the business.

Answer 1

Closing Capital = Opening Capital + Additional Capital + Profit – Drawings

= 3,40,000 + 40,000 + 2,40,000 – 1,40,000

= 4,80,000