on 31st March 2018 the total Assets and external liabilities worth Rs 200000 and RS 6,000 respectively during the year the proprietor had introduced capital of Rs 20,000 and withdraw rupees 12000 for personal use he made a profit of rupees 20000 during the year calculator capital on 1st April 2017
Answers
Given ,
Assets on year end = 2,00,000
Liablities on year end = 6000
Additional capital = 20000
drawings = 12000
Profit = 2000
Opening capital = ?
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Closing capital = Assets on year end - liabilities on year end
=2,00,000 - 6000
=1,94,000
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Closing capital = opening capital + additional capital + profit - drawings
1,94,000 = Opening capital + 20000+20000-12000
1,94,000 = Opening capital +28000
opening capital = 1,94,000 - 28000
=1,66,000
Opening capital = 1,66,000
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Alternatively ,
Opening capital = closing capital + drawings - additional capital - profit
= 1,94,000 + 12000 - 20000- 2000
=1,66,000
Answer:
Opening capital = ₹ 1,66,000
Explanation:
Firstly, we calculate closing capital as
Assets = Liabilities + Capital
₹ 2,00,000 = ₹ 6000 + Capital
₹ 2,00,000 - ₹ 6000 = Closing capital
₹ 1,94,000 = Closing capital
For getting opening capital:
Opening capital = Closing capital + Drawing - Profit - Additional Capital
= ₹ 1,94,000 + ₹ 12,000 - ₹ 20,000 - ₹ 20,000
= ₹ 1,66,000
Opening capital = ₹ 1,66,000
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