Question

Abhisek started a business with a capital of₹2,00,000. At the end of the year his total assets were₹5,00,000 and external liability were for₹2,25,000.he further informs you that during the year he withdrew₹25,000 for households use . during the year he sold his personal investment of₹25,000 at 20% profit and brought that money into the business as additional capital...

Answer 1

Answer:

closing capital. = assets-liablities

= 500000-225000

= 275000

profit =closing capital + drawing- additional capital-opening capital

= 275000+25000-(25000+25000*20%)-200000

= 300000-30000-200000

= 70000

Answer 2

Closing capital. = Assets-liablities

= 500000 - 225000

= 275000

Profit = Closing capital + Drawing - additional capital - opening capital

= 275000 + 25000 - (25000+25000*20%) - 200000

= 300000 - 30000 - 200000

= 70000