Question

Opening capital of Keshav was:

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

Hint:

When calculating opening capital, add back drawings and subtract the profit earned during the year from the closing capital.

Answer 1

The Correct Option is C

The closing capital of Keshav is Rs.55,000. To calculate the opening capital, adjustments are made for profit earned during the year and drawings made at the beginning of each quarter. 
Step 1: Calculate total drawings:
Drawings made at the beginning of each quarter = Rs.1,500. Total drawings for the year: \[ Rs.1,500 \times 4 = Rs.6,000. \] 
Step 2: Adjust for profit:
The profit for the year is Rs.15,000. 
Step 3: Calculate opening capital:
Opening capital is calculated as: \[ {Opening Capital} = {Closing Capital} - {Profit} + {Drawings}. \] Substituting the values: \[ {Opening Capital} = Rs.55,000 - Rs.15,000 + Rs.6,000 = Rs.43,000. \] 
Conclusion:
The opening capital of Keshav was \( Rs.43,000 \).