Question

nasar started a business on on 1st april 2019, with a cahs rs 50,000, goods rs5000 and a van rs 25,000. he earned a profit of rs 25,000 during a year ended 31st march 2020. he wtihdrew cash rs 5000 for personel use. he had borrowed rs 10,000 from his friend. what is his capital on 31st march 2020?
Plss answerr

Answer 1

Answer:

Nasar's capital on 1/4/19 = Cash + Stock + Van

                                       = ₹50,000 + ₹5,000 + ₹25,000

                                       = ₹1,00,000

He earned profit of ₹25,000

He withdrew ₹5,000 throughout the year.

So, Nasar's capital on 31/3/20 = Opening capital + Profit - Drawings

                                                = ₹1,00,000 + ₹25,000 - ₹5,000

                                                = ₹1,20,000

Explanation:

Cash borrowed from friend is a loan so there's no effect on capital.

I hope it helps :)

Answer 2

Answer:

closing capital = opening capital + profit - drawing