Question

From the following information, calculate the profit.

Capital at the beginning of the year ` 50,000.

Capital at the end of the year ` 5,00,000

Drawings during the year ` 50,000.​

Answer 1

Answer:

5,00,000

Explanation:

Profit = Closing Capital + Drawing - Opening Capital

Profit = 5,00,000 + 50,000 - 50,000

Profit = 5,00,000 Rs.

Answer 2

Answer:

PROFIT = ₹ 5,00,000

Explanation:

CLOSING CAPITAL = OPENING CAPITAL + ADDITIONAL CAPITAL (+ PROFIT - LOSS) - DRAWINGS

PROFIT = CLOSING CAPITAL + DRAWINGS - OPENING CAPITAL

PROFIT = 5,00,000 + 50,000 - 50,000 = ₹ 5,00,000