Question

On 31st March, 2021, total assets and external liabilities were ₹ 1,00,000 and ₹ 3,000 respectively. During the year, the proprietor had introduced additional capital of ₹ 12,000 and had withdrawn ₹ 6,000 for personal use. He made a profit of ₹ 10,000 during the year. Calculate the capital as on 1st April 2020.
(a) ₹ 97,000 (b) ₹ 1,00,000 (c) ₹ 81,000 (d) ₹ 1,03,000​

Answer 1

Closing capital = Closing assets - Closing liabilities (Y's loan)

                         = 1,00,000 - 3,000 = Rs. 97,000

Opening Capital = Closing Capital + Drawings - Additional Capital - Profits

                           = 97,000 + 6,000 - 10,000 - 10,000

                           = 83,000

Therefore, the Opening capital is Rs. 83,000.

Answer 2

Answer:

On 31st March, 2021, total assets and external liabilities were ₹ 1,00,000 and ₹ 3,000 respectively. During the year, the proprietor had introduced additional capital of ₹ 12,000 and had withdrawn ₹ 6,000 for personal use. He made a profit of ₹ 10,000 during the year. Calculate the capital as on 1st April 2020.

(a) ₹ 97,000 (b) ₹ 1,00,000 (c) ₹ 81,000 (d) ₹ 1,03,000