Question

Alex commenced with a capital of Rs.70,000 on 1.04.2019. The value of assets on 31.03.2020 were Rs.1,20,000 and his external liabilities were Rs.30,000. Identify the concept to be used and Find out the closing capital and the profit or loss earned.

Answer 1

Answer:

closing capital = closing assets - closing liabilities

= 1,20,000-30, 000 = 90,000

opening capital = 70,000

profit= closing capital - opening capital.

= 90,000- 70,000

= 20,000

Answer 2

Answer:

20,000

Explanation:

closing capital = closing assets - closing liabilities

= 1,20,000-30, 000 = 90,000

opening capital = 70,000

profit= closing capital - opening capital.

= 90,000- 70,000

= 20,000...