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formula of closing and opening capital?

 

The formulae for opening and closing capital would depend on the data given in the questions, but generally used formulas are : 

 

Closing Capital = Opening Capital + Profit−Loss + Additional Capital Introduced – Drawings

 

Opening Capital = Closing Capital +Drawings−Additional Capital−Profits +Loss

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formulas of opening and closing capital depends on what kind of question is asked . 

closing capital =

  • opening capital + profit       OR    
  • opening capital +profit +additional capital -drawings      OR  
  • closing assets - closing liabilities         

opening capital =

  • profit - closing capital
  • liabilities - opening assets 
  • closing capital +drawings + additional capital - profit
  • drawings + closing capital 
  • drawings - closing capital + loss 

now depending on your question choose your formula .

hope this helped ! :)
 

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