Ashu started a business on April 1, 2016 with a capital of 3,00,000. On 31" March, 2017 her assets and liabilities were of 5,90,000 and 7 2,80,000 respectively. Find out her closing capital and profit earned during the year. b2 = = Closing Capital Closing Assets - Closing Liabilities *5,90,000 - 2,80,000 Closing Capital 3,10,000 Profit Closing Capital - Opening Capital 3,10,000 - 3,00,000 Profit 10,000 Note: It should be noted here that if other information such as withdrawn cash for personal use, additional capital introduced etc., are given in question, then, following formula will be used: = Opening Capital - Drawings + Additional Capital + Profit = Closing Capital 1. Opening capital = Closing capital + Drawings - Additional capital Profit 2. Profit Closing capital + Drawings - Additional capital - Opening capital Illustration: 4 On March 31, 2017 the total assets and outside liabilities of a business concem were 9,00,000 and 4,20,000 respectively. During the year, the owner introduced additional capital of 90,000 and withdrawn 21,90,000 for personal use. The firm earned a profit of 1,25,000 during the year. You are required to calculate opening capital