Question

Question 27.
On 31st March, 2018, the total assets and external liabilities were ₹ 2,00,000 and ₹ 6,000 respectively. During the year, the proprietor had introduced capital of ₹ 20,000 and withdrawn ₹ 12,000 for personal use. He made a profit of ₹ 20,000 during the year. Calculate the capital as on 1st April, 2017.

Answer 1

Answer:

50009 hyy is the program for tomorrow kitty there

Answer 2

The capital on 1st April, 2017 is ₹ 1,66,000.

Explanation:

Given:

On 31st March, 2018, the total assets and external liabilities were ₹ 2,00,000 and ₹ 6,000 respectively. During the year, the proprietor had introduced capital of ₹ 20,000 and withdrawn ₹ 12,000 for personal use. He made a profit of ₹ 20,000 during the year.

Now, to calculate the capital as on 1st April, 2017.

Total assets = ₹ 2,00,000.

External liabilities = ₹ 6,000.

Additional Capital = ₹ 20,000.

Drawings = ₹ 12,000.

Profit = ₹ 20,000.

So, we find the opening capital first by subtracting external liabilities from the total assets:

Opening Capital = ₹ 2,00,000 - ₹ 6,000

Opening Capital = ₹ 1,94,000.

Now, to get the closing capital we put formula:

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

$Closing\ Capital=1,94,000-20,000+12,000-20,000$

$Closing\ Capital=1,74,000+12,000-20,000\\Closing\ Capital=1,86,000-20,000\\Closing\ Capital=1,66,000.$

Therefore, the capital on 1st April, 2017 is ₹ 1,66,000.