From the following particulars ascertain profit or loss Capital at the beginning of the year April -2019 2,50,000 Capital at the end of the year mar-2020 4,25,000
Additional capital introduced during the year 25,000
Drawing During the year 35,000
Answers
Answer:
Atul does not keep proper records of his business. He gives you the following information:
(₹)
Opening Capital 2,00,000
Closing Capital 2,50,000
Drawings made during the year 60,000
Capital added during the year 75,000
Calculate profit or loss for the year.
ANSWER:
Statement of Profit or Loss
for the year ended ….
Particulars Amount
(Rs)
Capital at the end of the year 2,50,000
Add: Drawings made during the year 60,000
Less: Additional capital introduced during the year 75,000
Adjusted capital at the end of the year 2,35,000
Less: Capital in the beginning of the year 2,00,000
Profit made during the year
hope it helps you!!
Answer:
Explanation:
Closing capital = Opening capital + Additional capital (if any) + (+ profit , - loss) - Drawings
Profit/loss = closing capital + drawings - additional capital - opening capital
→ if the resultant figure is positive it is profit
→ if the resultant figure is negative it is loss
