The Amount Of Current Capital Is Calculated As Follows: Capital Account Balance + Net Income - Drawing Account Balance = Current Capital | True Or False?

Calculation Of Ending Capital Or Capital For The Current Accounting Period

The answer of this true & false question is “True”, as in the case of Sole Proprietorship, the current capital or capital for the current accounting period is calculated by adding Net Income / Net Profit for the accounting period to Beginning Capital and deducted Drawings During the period from Beginning Capital.