Question

From the following data calculate capital at the end of the year:

Capital in the beginning Rs.6,000

Profit Rs.1,000

Drawings Rs.2,000

Capital at the end ?

Additional capital introduces Rs.3,000​

Answer 1

Answer:

Statement of Profit or Loss

Particulars

Amount

(Rs)

Capital at the end

90,000

Add: Drawings

5,000

95,000

Less: Additional Capital Introduced

(10,000)

Adjusted Capital at the end

85,000

Less: Capital in the beginning

60,000

Net Profit for the year

25,000