Opening capital is Rs 27,500, goods taken for personal use Rs 5,000, additional capital Rs 2,500 and profit Rs 10,000. The closing capital is:

1. Use the rearranged form printed in the tutorial note: opening capital plus additional capital plus profit minus drawings equals closing capital. 2. Opening capital Rs 27,500 plus additional capital Rs 2,500 gives Rs 30,000. 3. Adding the profit of Rs 10,000 gives Rs 40,000. 4. The goods taken for personal use are drawings in kind, so subtract Rs 5,000. 5. The closing capital is therefore Rs 35,000. 6. Option B forgets the drawings altogether, and option C stops before the profit is added. _Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 1 "Accounts from Incomplete Records", Illustration 4_