Question

(a) A starts a business and invests rs 50000 on 1st april 2018 . on 31st march 2019 his assets are rs.65000 and liabilities are rs 6000 . find out the amount of capital on 31st march 2019 and his profit.
(b)on the above case if the proprietor had invested rs.5000 as additional capital and withdrawn rs 2000 ,what will be your answer?
(c) if A had withdrawn from his business rs 3000 for personal use , find out the profit in this case .​

Answer 1

Answer:

i) Capital = Assets minus Liabilities=59,000

  Profits = Closing Capital minus Opening Capital= 9,000

 

ii) Closing Capital = 59,000

   Opening Capital = Closing Capital + Drawings - Additional Capital

   = 59,000 + 5,000 - 2,000=62,000

iii) Opening Capital = Closing Capital + Drawings - Additional Capital - Profits

    50,000=59,000 + 3,000 - 0 - Profits

    Profits = 12,000

Explanation:

Answer 2

Answer:

59,000 is the right answer