Given:

Opening capital - #1,500

Capital introduced - # 500

Profit for the year - # 800

Cash drawings - # 250

Calculate the closing capital

  • A #2,550
  • B #2,500
  • C #2,350
  • D #2,250

The correct answer is A. #2,550

Closing capital = Opening Capital + Additional Capital + Profit - Less Loss - Drawings

1500 + 500 + 800 - 250 = 2550

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