Question

Mohan started a business on 1st April 2015 with capital of 10000Rs and he borrowed 3000Rs from a friend.He earned a profit of 5000Rs during a year which ended on 31st March 2013and withdrew cash 4000Rs for private use. What is his capital on 31st March 2015​

Answer 1

Answer:

Explanation:

Given

Opening capital = 10000

Loan = 3000

profit = 5000

Drawings  4000

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Closing capital = opening capital - drawings + profit

                          = 10000 - 4000+ 5000

                          = 11000

Closing capital = 11000

Answer 2

Mohan's capital on 31st March 2015​ is Rs.11000.

Explanation:

Given:

Mohan started a business on 1st April 2015 with capital of Rs.10000.

Mohan borrowed  Rs.3000 from a friend.

Mohan earned a profit of Rs. 5000 during a year which ended on 31st March 2013.

Mohan withdrew cash  Rs.4000 for private use.

To Find:

Mohan's capital on 31st March 2015​.

Solution:

As given,Mohan started a business on 1st April 2015 with capital of Rs.10000.

Amount which Mohan started a business with capital = Rs.10000.

As given,Mohan earned a profit of Rs. 5000 during a year which ended on 31st March 2013.

Amount which Mohan earned a profit = Rs.5000.

As given,Mohan withdrew cash  Rs.4000 for private use.

Amount  which Mohan withdrew cash  for private use =Rs.4000.

Mohan's capital on 31st March 2015​ =Amount which Mohan started a business with capital+Amount which Mohan earned a profit+Amount  which Mohan withdrew cash  for private use.

                                                           $= 10000+5000-4000\\=Rs.11000$

Thus,Mohan's capital on 31st March 2015​ is Rs.11000.

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