If opening capital is £120,000, closing capital is £140,000, profits for the period are £20,000 and capital introduced is £10,000, then drawings are:

Question

Quizplus · Accepted Answer

Drawings can be calculated using the formula: Opening Capital + Capital Introduced + Profit - Closing Capital = Drawings. Plugging in the given values: £120,000 + £10,000 + £20,000 - £140,000 = £10,000.

If Opening Capital Is £120,000, Closing Capital Is £140,000, Profits