Jaswant Singh started business on 1 April, 2018 with a capital of 5,00,000 and 10% bank
loan of 2,00,000. On 31st March, 2019, his assets were * 7,50,000 and bank loan 1.70,000.
Proprietor had introduced additional capital of 1,25,000 and had withdrawn * 90,000 for
personal use. Find out his capital on 31 March, 2019 and profit or loss during the year 2018-19.
Answers
Answered by
0
Answer:
it is profit
Explanation:
because his loan decreased and his money increased
Answered by
0
Answer:
Jaswant Singh's Capital on 31st March 2019 is Rs.535000 and
Profit and loss during the period of the year 2018-19 = Rs.45000.
Explanation:
- In the balance sheet,
Total of Assets = Total of liabilities
- Total liabilities = Capital at the start of the year + Capital introduced during the year - Capital withdrawn during the year + Profit and loss during the year + Bank loan at the end of the year.
- Total bank loan at the end of the year = Loan at the start of the year + Interest on the loan during the year - loan paid at the end of the year.
Given in the question:
At the start of the year
- Capital in the starting of the business is Rs. 500000,
- 10% bank loan at the start of the business is 2,00,000.
During the year
- Proprietor introduced additional capital of Rs. 1,25,000
- Capital withdrew Rs.90,000 for personal use during the year.
At the end of the year
- Assets = Rs. 750000
- Bank loan = Rs. 170000
Solution -
- Total liabilities at the end of the year = Rs.750000
- Total loan at the end of the year = Rs.170000
(Repaid loan = Rs.50000, Interest on loan = Rs.20000)
- Net capital at the end of the year = Capital at the start of the year + Capital introduced during the year - Capital withdrawn during the year.
- Net capital of Jaswant at the end of the year
= 500000 + 125000 - 90000 = Rs. 535000
- Profit and loss during the year
= Total Liabilities - Bank loan at the end of the year - Capital at the end of the year
= 750000 - 170000 - 535000 = Rs.45000
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