Answer : Opening Capital and Closing Capital : Opening capital can be ascertained by preparing the statement of affair at the beginning of the year and to ascertain the closing capital we can prepare the statement of affair at the end of the year as follows.                               Statement of Affairs                                      as on  ..... LiabilitiesAmt. (Rs)AssetsAmt. (Rs) Bills Payable    ----Land and Building     --- Creditors    ----Plant and Machinery     --- Outstanding Expenses Furniture Capital (Balancing Figure) @Stock Debtors    ---- Cash and Bank     ----- Prepaid Expenses       --- Caiptal - Deficiency       ---- (Balancing Figure, if any)     -----      =        = (b) Credit Sales and Credit Purchase : Credit sales can be ascertained by preparing the Total Debtors Account whereas total credit purchase can be ascertained through. Total Creditors Account. They are prepared as follows.         Dr                         Total Debtor's Account                                 Cr ParticularsJFAmt. (Rs)ParticularsJFAmt.(Rs) Balance b/d   -----Cash   ----- Bills Receivable   -----  Bank   ----- (Bills dishonored)Discount Allowed   ----- Bank (Cheque dishonored)       ------Bad debts    ----- Credit Sales (Balancing Figure)   ------Sales Returns    ------ Bills Receivable (Bill Drawn)       --- Balance c/d     ----     =      = Dr                           Total Creditor's Account                             Cr ParticularsJFAmt.(Rs)ParticularsJFAmt.(Rs) Cash   ----Balance b/d    --- Bank   ----Bank Bills Payable   ----(Cheque Dishonoured)    --- Discount Received   ---Bills Payable (Bills Dishonoured)    --- Purchase Return   --- Balance c/d   ---Credit Purchases   --- (Balancing Figure)   ---       =    = (c) Payment to Creditors and Collection from Debtors : Payment to the creditors is ascertained from the Total Creditors Account as a balancing figure and collection from debtors are ascertained from the Total Debtors Account as a balancing figure. (d) Closing Balance of Cash : Closing balance of cash is ascertained from the Cash Book, which shows all receipts in the debit side and all payments in the credit side during an accounting year and the balancing figure of the cash book is the closing balance of cash.