Question

'A' commenced his cloth business on 1st April, 2011 with a capital of ₹ 3,00,000. On 31st March, 2012 his assets were worth ₹ 5,00,000 and liabilities ₹ 1,00,000. Find out his closing capital and profits earned during the year.​

Answer 1

Answer:

Explanation:

                    Balance Sheet of A as at 31.03.2012

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Liabilities                                                 Assets

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Opening Capital 3,00,000            Total Assets                     5,00,000.00

Add Profit            1,00,000*

Capital                      4,00,000.00

Sundry Liabilities      1,00,000.00

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Total                         5,00,000.00                                             5,00,000.00

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* Balance figure