Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

While calculating the opening capital from the closing capital, drawings against capital is................

Options:

Deducted from closing capital

Added to closing capital

No use in determining opening capital

None of these

Correct Answer:

Added to closing capital

Explanation:

Opening Capital = Closing capital + drawings - additional capital - profit + loss.
Both drawings are added whether it is drawings against capital or drawings against profit.