Question

Please answer this question.

Calculate the closing capital from following details-
(1) Suresh commenced business with cash Rs 36,000
(2) Paid rent in advance Rs 300
(3) Purchased for cash Rs. 18,000 & credit Rs. 12,000
(4) Sold goods for cash Rs. 18,000 costing Rs. 12,000
(5) Paid salary Rs. 300 and salary outstanding Rs. 60
(6) Bought motorcycle for personal use Rs. 3,000​

Answer 1

Rs 38640

Step-by-step explanation:

Closing capital is the summary of transaction including current assets and long term prepaid less total liabilities as of close of business on the closing date

Cash Stock Adv. Salary out. creditor Capital

Opening capital 36,000 36,000

Advanced rent (300) 300

Purchase for cash (18000) 18000

Credit purchase 20000 20000

Goods sold 18000 (12000) 6000

Salary (300) 60 (360)

Drawings (3000) (3000)

32400 26000 300 60 20000 38640

Closing capital = Rs 38640