Question

Op cap. 25000, cl.cap. 137500, drawing 12500,and new capital 22500 then gross profit is

Answer 1

Answer:

To Find Profit OR Loss :

Given :

• Opening Capital - 25,000

• Closing Capital - 1,37,500

• Additional Capital ( new ) - 22,500

• Drawings - 12,500

Format of Statement Of Profit / Loss a/c ;

• Closing Capital - XXX

• Add : Drawings - XXX

______

XXX

• Less : New Capital - XXX

• Less : Opening Capital - XXX

______

Gross Profit Or Loss - XXX

Solution :

• Closing Capital - 1,37,500

• Add : Drawings - 12,500

______

1,50,000

• Less : New Capital - 22,500

• Less : Opening Capital - 25,000

______

Gross Profit Or Loss - 1,02,500

∴ Gross Profit = 1,02,500

Working Note :

Closing Capital + Drawings - Additional Capital - Opening Capital = Gross Profit / Loss

= 1,37,500 + 12,500 - 22,500 - 25,000

= 1,50,000 - 22,500 - 25,000

= 1,27,500 - 25,000

= 1,02,500

Then the Gross Profit becomes 1,02,500.