Phool Singh’s capital on April 1, 2021 was ₹90,000. Information regarding 2021–22 is as under:
Interest on Drawings – ₹10,000 Interest on Capital – ₹4,000 Drawings – ₹28,000 Profit – ₹30,000 Calculate the capital of Phool Singh as on March 31, 2022.**

Correct option is C

Phool Singh's capital as on March 31, 2022, you need to adjust his opening capital with the profit, interest on capital, drawings, and interest on drawings for the accounting year. 
The formula is:
Closing Capital = Opening Capital + Profit + Interest on Capital – Drawings – Interest on Drawings 
Here is the step-by-step calculation:
1. Opening Capital: ₹90,000
2. Add Profit: + ₹30,000
3. Add Interest on Capital: + ₹4,000
4. Deduct Drawings: - ₹28,000
5. Deduct Interest on Drawings: - ₹10,000 
Calculation: ₹90,000 + ₹30,000 + ₹4,000 – ₹28,000 – ₹10,000 =  ₹86,000.
Therefore, the capital of Phool Singh as on March 31, 2022 was ₹86,000.
The correct option is  (c) ₹86,000.