Question

Q.13 A commenced business on 15 April 2011 with a capital of 5,00,000, on 31 March 2012 his assets were worth
7,80,000 and liabilities 70,000. Find out his closing capital and profits earned during the year.​

Answer 1

Explanation:

Closing Capital=Closing Assets - Closing Liabilities=Rs.7,80,000 - Rs.70,000 = Rs.7,10,000Profit=Closing Capital - Opening Capital=Rs.7,10,000 - Rs.5,00,000 = Rs.2,10,000