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Trial balance: capital ₹2,00,000; drawings ₹15,000; net profit for year ₹35,000. Closing capital:
A₹2,15,000 closing capital
B₹2,50,000 closing capital
C₹2,35,000 closing capital
D₹2,20,000 closing capital
Answer & Solution
Correct answer: D. ₹2,20,000 closing capital
1. Closing capital = Opening + Profit − Drawings.
2. = 2,00,000 + 35,000 − 15,000.
3. = ₹2,20,000.
_Source: ICAI BoS Foundation Paper 1, Ch 7 U1 "Final Accounts", §1.5 capital section_
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