Question

Question 15.
Manu started business with a capital of ₹ 4,00,000 on 1st October, 2005. He borrowed from his friend a sum of ₹ 1,00,000. He brought further ₹ 75,000 as capital on 31st March, 2006, his position was:
Cash : ₹ 30,000; Stock : ₹ 4,70,000; Debtors : ₹ 3,50,000 and Creditors : ₹ 3,00,000.
He withdrew ₹ 8,000 per month during this period. Calculate profit on loss, for the period.

Answer 1

Answer:

he started a business capita of 400000 on 1DT gjgalb

Answer 2

The profit and loss for the year amounts to Rs 23,000

Explanation:

• First computing the adjusted capital on March 31,2006 as:

Adjusted capital on March 31,2006 = Capital as on March 31,2006 + Drawings  - Additional Capital introduced

Adjusted capital on March 31,2006 = Rs 450,000 + Rs 48,000 - Rs 75,000

= Rs 423,000

• Now, computing the Profit and loss for the year as:

Profit and loss for the year = Adjusted capital on March 31,2006 - Capital as on October March 31, 2005

Profit and loss for the year = Rs 423,000 - Rs 400,000

Profit and loss for the year = Rs 23,000