Question

B invested Rs.400000 in the business, on 31st March,2020 his assets were Rs.650000 and liabilities

Rs.70000, he withdrew for personal use Rs.20000 and further invested into business Rs.80000.

Calculate closing capital and profit during the year.​

Answer 1

Answer:

Closing Capital = 10,40,000

Explanation:

Capital + Liablities = Assets

Capital = Assets - Liabilities

= 650000 - 70000 = 580000.

Closing Capital = 580000+400000-20000+80000 = 10,40,000