Question

2. Calculate the amount of total assets and capital as on 31.12.2013 in each of the following

cases:

i. Shyam started a business on 1.1.2013 with a capital of Rs.10,000 and a loan of Rs. 5,000

borrowed from Chirag. During the year, he made a profit of Rs.5,000.​

Answer 1

Answer:

Explanation:

Shyam started a business on 1.1.2013 with a capital of Rs.10,000 and a loan of Rs. 5,000  borrowed from Chirag. During the year, he made a profit of Rs.5,000

Opening account : Rs. 10,000

loan : Rs. 5000

Profit : Rs.5000

Closing Capital : opening account + Profit - drawing

                            = 10,000 + 5000 - 0 ( there is no withdrawal)

                             = 15000

Closing capital on 31.12.2013 is Rs. 15000