Question

Abhi started business on 1 April 2019 with capital Rs. 300000. On 31st March 2020 his total assets
amounted to Rs. 540000 and liabilities to Rs. 120000. Find out the amount by which his capital has
increased as on 31st March 2020.​

Answer 1

Explanation:

capital on 1st April 2019

= 300000

capital on 31st March 2020

= total assets - total liabilities

= 540000 - 120000

= 420000

Increase in capital

= 420000 - 300000

= 120000