Question

Capital introduced at the beginning by ram rs. 13,000 further capital introduced during the year rs 3,000. Drawings rs 4,000 and closing is rs 20,000. The amount of net pro it will be

Answer 1

profit = closing amt.- (total capital+ drawings)
20000-(13000+3000-4000)
=8000
profit =8000
(total capital= beginning capital + additional capital)

Answer 2

Profit for the year =

(Closing capital + Drawings - Additional Capital ) - Opening Capital

(20,000 + 4000 - 3000) - 13,000

21,000 - 13,000

= Rs.8,000