Question

Question 6
(A) Sanjay maintains his books on the single entry system.
lle provides the following information pertaining to his business:
Capital as on 1" April, 2018
Capital as on 31" March, 2019
60,000.
370,000
During the year 2018-19;
(1)
He withdrew goods worth
2,000 for his personal use.
(ii)
To raise further capital, he sold his investments worth ? 40,000 at a loss of
10% and invested the sale proceeds in huis busineS.
You are required to calculate the profit / loss made by Sanjay in the
year 2018-19.​

Answer 1

Profit 276000

Explanation

This Question is Related to Single entry

There are 2 ways to solve this Problem

1. Account pattern

2. Formula way

ok, now we use Account Pattern on this Question

in any other Question we also use formula way

Now, we Come main Part of Problem

In this Question we calculate the profit / loss made by Sanjay in the

year 2018-19.​

• To Calculate Profit/loss by him
• we make  Capital Account , Because Capital Represents Owner

How to make Capital Account

1. Apply basic rule of accounts

What is Capital Rule ?

Increase in Capital - Credit

Decrease in Capital - Debit

by follow above 2 rule we try to understand the creation of Capital Account

• the Opening balance of Capital is Credit
• the closing balance of captial is debit
• drawings of goods decreased the capital , so capital is debit
• sale proceed invest in business that means capital is increase means credit
• Credit side balancing figure will be profit

to follow above rules and basics we can very easily prepared capital account

we give Capital Account in attachment

#learn more

https://brainly.in/question/4933638