A starts a business and invest rupees 50000 on 1st april 2017 on 31st march 2018 his assets rs 65000 and liabilities are rupees 6000 find out the amount of capital on 31st march 2018 and his profit
Answers
Answer:
Capital 59000
Profit 9000
Explanation:
Capital as on 31 march,2018 65000-6000 equals 59000.
Profit=Closing Capital - Opening Capital
59000-50000=9000
Answer:
Capital:- 59,000rs
Profit 9000rs
Explanation:
To Find:
Closing Capital and the profit of the business Ram.
1. Closing Capital:
Closing capital is put with the capital and, after that, added together. e.g. assets - liabilities = capital. or, then again e.g. assets = capital + liabilities.
Closing Capital = Opening capital + profit- loss + additional capital introduced - drawings
2. Liability:
Liability is an accounting term that describes any kind of financial obligation that a business has to pay at the end of an accounting year to a person or a business identity.
Liabilities are settled by transferring economic benefits such as money, goods or services.
3. Opening Capital:
The opening capital is the adjusted balance presented toward the start of a bookkeeping period.
The opening balance measures assets in an organization's record toward the start of another accounting period. It is the primary section in the records, either when an organization is first beginning up its forms or following a year-end.
Opening Capital = closing capital + drawings - additional capital - profit + loss
4. Profit:
Profit is the monetary gains earned by a business after calculating the difference between the total revenue and the company's total expense.
Profit is an essential aspect of a business as it is one of the primary reasons why a company is started in the first place.
It initiates the growth of the business.
Profit= Total Revenue- Total Expense
Thus Capital, as on 31 march 2018, 65000-6000 equals 59000.
Profit=Closing Capital - Opening Capital
59000-50000=9000
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