Question

    Which one of the following is a correct equation?

    A Opening capital = Closing Additional capital - Drawings - Profit Correct Answer Incorrect Answer
    B Opening capital = Closing capital + Drawings - Additional capital - Losses Correct Answer Incorrect Answer
    C Opening capital = Closing capital + Drawings - Additional capital - Profit Correct Answer Incorrect Answer
    D Opening capital = Closing capital - Drawings - Additional capital - Profit Correct Answer Incorrect Answer

    Solution

    Answer: C. Opening capital = Closing capital + Drawings - Additional capital – Profit

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