Question

0.9 started a business on 1st April, 2013 with a Capital of 2,00,000 and a
loan o 75,000 from the bank. During the year, he had introduced additional capital
of 60,000 and had withdrawn 36,000 for personal purposes. On 31st March, 2014
his assets were 3,80,000. Find out his Capital as on 31st March, 2014 and profit
earned during the year 2013-14.
1

Answer 1

Answer:

Asset Side = 3,80,000

Capital and Liabilities side = (2,00,000 + 60,000 - 36,000) + 75,000 = 2,99,000

Profit = Balancing Figure = 3,80,000 - 2,99,000 = 81,000

Capital as on 31st march 2014

Alternative-1 : 2,00,000 + 60,000 + 81,000 - 36,000 = 3,05,000

Alternative-2 : Capital = Asset - Liability = 3,80,000 - 75,000 = 3,05,000