Question

Q.9 X started business with a capital of Rs.1,20,000. During the year, he introduced further capital Rs.30,000 but withdrew Rs.25,000 during the year for personal use. At the end of the year, his assets worth Rs. 2,00,000 and liabilities amounting to rs. 30,000.

Answer 1

Capital is rs 170,000

Answer 2

asset = closing capital +liability 
200000 =closing capital +30000
closing capital =200000-30000
                        =170,000


Closing Capital = Opening capital +Additional Capital +Profit-Drawings

Closing Capital = Assets - Liabilities
    1,70,000      =120000+30000-25000+profit  

Profit =1700000-125000
          =45,000