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To find out the profit, closing capital is to be adjusted by _____ drawings and ___ introduction of fresh capital
  • a)
    Deducting and Deducting
  • b)
    Adding and Adding
  • c)
    Deducting and Adding
  • d)
    Adding and Deducting
Correct answer is option 'D'. Can you explain this answer?
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To find out the profit, closing capital is to be adjusted by _____ dra...
The opening capital is the adjusted balance presented toward the start of a bookkeeping period. The opening balance is the measure of assets in an organization's record toward the start of another money related period. It is the primary section in the records, either when an organization is first beginning up its records or following a year-end. 

Opening Capital = closing capital + drawings - additional capital - profit + loss
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To find out the profit, closing capital is to be adjusted by _____ dra...
Ans: option 'D' is correct. it can be explained by the example given below -- Ex. (Rs) Closing Capital 4,00,000 Add : Drawings 3,00,000 less: Additional Capital Introduced. (1,00,000) less: Opening Capital (5,00,000) ----------------------------------------------------Profit. 1,00,000 the other way round of explaining this is--- to find out Profit, the Closing Capital is to be adjusted by adding Drawings and by Deducting Introduction of fresh Capital.
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To find out the profit, closing capital is to be adjusted by _____ drawings and ___ introduction of fresh capitala)Deducting and Deductingb)Adding and Addingc)Deducting and Addingd)Adding and DeductingCorrect answer is option 'D'. Can you explain this answer?
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