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Question -

From the following information, calculate capital at the beginning:

 

Rs

Capital at the end of the year

4,00,000

Drawings made during the year

60,000

Fresh capital introduce during the year

1,00,000

Profit of the current year

80,000



Answer -

Capital in the beginning

=

Capital at the end + Drawings – (Fresh Capital Introduced + Profit)

 

=

4,00,000 + 60,000 – (1,00,000 + 80,000)

 

=

Rs 2,80,000

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