Question

a limited liability company was incorporated on 1st July 2019 in order to purchase a running business from 1st April 2019 following particulars are available from its record 1, total sales 2019 to 20 rupees 80000. 2, sales from first April 2019. 3, Gross profit for the whole year rs. 30000. 4, total expenses 2019_20 ( including director's fees RS. 1000. 5, Companies shares capital RS. 75000. find out the profit prior to incorporation ​

Answer 1

hlomate here's your answer

ANSWER:

Capital at the end

= Opening Capital + Additional Capital + Profit − Drawings

= 70,000 + 20,000 + 20,000 − 7,000 = Rs 1,03,000

i hope its help you

Answer 2

Explanation:

capital at the end=opening capital+additional capital+profit-drawing

=70000+20000+20000-7000 =1,03,000