Use the following information to answer the question below Opening capital ---10,800 Drawings----------- 2,500 Trade creditors ----2,560 Trade debtors -----...

Answer Details

The closing capital can be calculated using the following formula: Closing Capital = Opening Capital + Net Profit - Drawings Plugging in the values from the information given, we get: Closing Capital = 10,800 + 6,000 - 2,500 Closing Capital = 14,300 Therefore, the closing capital is 14,300. This represents the total amount of capital that the business has at the end of the accounting period after taking into account the net profit earned during the period and the amount withdrawn by the owner. The closing capital is an important figure that helps the business owner to understand the financial health of the business and make decisions about its future operations.