Question

'A' commenced his cloth business on 1st April, 2011 with a capital of

Rs.3,00,000. On 31st March,2012 his assets were worth Rs. 5,00,000 and

liabilities Rs.1,00,000. Find out his closing capital and profits earned during

the year. please solve ​

Answer 1

Answer:

closing Capital = Asset - Liabilities = 5,00,000 - 1,00,000 = 4,00,000

Profit = 4,00,000 - 3,00,000 = 1,00,000

Explanation:

Closing Capital = Opening Capital + Profit