Question

Opening capital of Keshav was:

• A. rupee 35,000
• B. rupee 39,000
• C. rupee 43,000
• D. rupee 52,000

Hint:

To calculate opening capital, adjust the closing capital by adding back drawings and subtracting profits.

Answer 1

The Correct Option is D

We calculate Keshav's opening capital using the formula: \[ \text{Opening Capital} = \text{Closing Capital} - \text{Net Profit} + \text{Drawings} - \text{Interest on Drawings} \] 

Given: - Closing Capital = rupee 55,000 - Keshav’s Share of Profit = \( \frac{3}{5} \times rupee 15,000 = rupee 9,000 \) 
- Drawings during the year = rupee 1,500 × 4 = rupee 6,000 
- Interest on Drawings: \[ \text{Interest} = rupee 6,000 \times 8\% \times \frac{6.5}{12} = rupee 260 \] 

Now, applying the formula: \[ \text{Opening Capital} = rupee 55,000 - rupee 9,000 + rupee 6,000 - rupee 260 \] \[ = rupee 52,000 \] 

Thus, the correct answer is rupee52,000 (Option D).