Question

(6) If the cash of the business Rs. 40,000, Stock
90,000, Debtors Rs 25,000 and Creditors Rs.
20,000, Capital will be:-?​

Answer 1

Explanation:

Capital at the end 90,000

Add: Drawings5,000

95,000

Less: Additional Capital Introduced(10,000)

Adjusted Capital at the end85,000

Less: Capital in the beginning

60,000

Net Profit for the year

25,000