Closing Capital =Closing Assets – Closing Liabilities Here Closing Assets = Inventory + Cash at Bank + Plant and Machinery + Debtors + Investments = 2,400 + 1,800 + 1,000 + 500 + 2,000 = 7,700 Closing Liabilities = Bills Payable + Creditors + Loan from Raja Ram = 400 + 800 + 1,500 = 2,700 So Closing Capital = Closing Assets – Closing Liabilities = 7,700 – 2,700 = Rs. 5,000
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(1) substantial...
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