A started a business on 1st april 2017 with the capital of 2,00,000and loan of 10,000 . during the year he invested 5,40,000as his additional capital and he withdrew for personal use 23,000on 31st march 2018 his asset 5,40000 find profit and capital as on 31st march?
Answers
capital = asset - liablities
=540000-10000
=530000
closing capital =opening capital + additional capital + profit - drawings
530000=200000+540000+profit -23000
530000=717000+profit
profit = 717000-530000
=187000
Ans Profit = 187000
closing capital = 530000
Hope its useful..!!!
assets=5, 40, 000
liabilities =10, 000
opening capital =2, 00, 000
additional capital =540000
drawings 23000
now,
assets= capital+ liabilities
capital= asset- liabilities
=540000-10000
=530000
closing capital=opening capital+ additional capital+ profit- drawings
530000=200000+540000+profit-23000
530000=717000+profit
profit= 717000-530000
profit = 187000
therefore, profit=187000
and
capital= 530000