Please answer this question.

Calculate the closing capital from following details-
(1) Suresh commenced business with cash Rs 36,000
(2) Paid rent in advance Rs 300
(3) Purchased for cash Rs. 18,000 & credit Rs. 12,000
(4) Sold goods for cash Rs. 18,000 costing Rs. 12,000
(5) Paid salary Rs. 300 and salary outstanding Rs. 60
(6) Bought motorcycle for personal use Rs. 3,000

Rs 38640

Explanation:

Closing capital is the summary of transaction including current assets and long term prepaid less total liabilities as of close of business on the closing date

                           Cash        Stock     Adv.     Salary out.  creditor Capital

Opening capital    36,000                                                              36,000        

Advanced rent      (300)                     300                                    

Purchase for cash (18000)   18000

Credit purchase                    20000                               20000

Goods sold               18000    (12000)                                              6000

Salary                         (300)                                       60                    (360)

Drawings                   (3000)                                                              (3000)

                                  32400      26000     300        60    20000    38640      

Closing capital = Rs 38640

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