Arif started a business on 01.04.19 with a capital of Rs 42,000. During the year he had introduced additional capital of Rs 18,000. He made a profit of Rs 24,000 and he had withdrawn Rs 8,000 for personal use. Find out the closing capital by using Accounting Equation.
Answers
Answer:
32,500.
Explanation:
Given:
Mohan started a business on 1st April, 2017 with a capital of ₹ 25,000 and a loan of ₹ 12,500 borrowed from Shyam. During 2017-18 he had introduced additional capital of ₹ 12,500 and had withdrawn ₹ 7,500 for personal use. On 31st March, 2018 his assets were ₹ 75,000.
Now, to find his capital as on 31st March, 2018 and profit made or loss incurred during the year 2017-18.
So, to get the Capital on 31st March, 2018 we put formula:
Capital = Assets - Loan borrowed
\begin{gathered}Capital =75000-12500\\\\Capital=62500.\end{gathered}
Capital=75000−12500
Capital=62500.
Thus, Capital on 31st March, 2018 is ₹ 62,500.
As, the Opening capital is ₹ 25,000 and the Closing Capital is ₹ 62,500.
Now, to get the profit made or loss incurred during the year 2017-18 we again put another formula:
Profit/Loss = (Closing capital + Drawings) - (Opening capital + Additional capital)
Profit/Loss=(62500+7500)-(25000+12500)Profit/Loss=(62500+7500)−(25000+12500)
Profit/Loss=70000-37500Profit/Loss=70000−37500
Profit/Loss=32500.Profit/Loss=32500.
Hence, the profit made or loss incurred during the year 2017-18 is ₹ 32,500.
Therefore, his capital as on 31st March, 2018 is ₹ 62,500 and profit made or loss incurred during the year 2017-18 is ₹ 32,500.
Explanation:
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Answer:
Answer = 60,000
i.e Closing Capital = 60,000
