Question

018 Mr. Joshi started a business with a capital of 5,00,000. Al the end of the year his position was PARTICULARS Amt Cash in hand 15.000 Cash at bank 70.000 Sundry Debtors 1 20.000 Stock 2.40.000 Furniture 75.000 Machinery 200.000 Sundry creditors at this date fotated < 80.000. During the year he introduced a further cap tal of 1.50.000 and withdrew for household expenses 90,000 You are required to calculate profit or loss during the year. Plz do it in a proper format and send a photo
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Answer 1

Answer:

Balancing figure = Net profit = 380000

Explanation:

Additional capital during the year is a result of working capital requirements and closing capital is the composition of profit or loss along with some capital contribution.

Hence, to remove the capital effect additional capital is deducted from closing capital in order to derive the correct profit or loss earned by the company.

Answer 2

Answer:

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