Question

If the capital at the end of the year is Rs 40000.capital introduced during the year Rs 30000;drawing for the year Rs 20000 and loss for the year is Rs 60000, than capital at the beginning of the year was​

Answer 1

Answer:

Statement Showing Capital at the Beginning of the Year

Particulars Amt. (Rs)

Capital at the end of the year 4,00,000

(+) Drawings made during the year 60,000

4,60,000

(-) Fresh Capital introduced during the year 1,00,000

3,60,000

(-) Profit of the Current year 80,000

Capital at the Beginning of the year 2,80,000

Answer 2

Explanation:

Given:

• The Capital at the end of the year is Rs 40,000

• Capital introduced during the year Rs 30,000

• Drawings for the year Rs 20,000

• Loss for the year is Rs 60,000

Than

• Capital at the Beginning of the year = ??

Solution :

=> Capital at the Beginning + 30,000 - 60,000 - 20,000 = 40,000

=> Capital at the Beginning - 30,000 - 20,000 = 40,000

=> Capital at the Beginning - 50,000 = 40,000

=> Capital at the Beginning = 40,000 + 50,000

Capital at the Beginning = 90,000

Therefore,Capital at the Beginning of the year was Rs.90,000