Question

.Rajneesh started a business on 1stApril,2018 with a capital of Rs25,000 and a loan of

Rs12,500 borrowed from Shridhar.During2018–19 he had introduced additional

capital of Rs12,500 and had with drawn Rs7,500 for personal use.On31stMarch,2019

his assets were Rs75,000.Find out capital as on31stMarch,2019 and profit made or loss incurred during the year2018–19.​

Answer 1

Answer:

Asset Side = 75,000

Capital and Liabilities side = 25,000 + 12,500 - 7500 + 12,500 = 42,500

Profit = Balancing Figure = 75,000 - 42,500 = 32,500

Capital as on 31st march 2019

Alternative-1 = 25,000 + 12,500 + 32,500 - 7500 = 62,500

Alternative-2 = Capital = Asset - Liabilities = 75,000 - 12,500 = 62,500