Question

Rakesh Commenced business with capital of Rs. 200000 and with bank loan of Rs. 100000. At end of the year
tot. I assets are of Rs. 450000. During the year Rakesh introduced additional capital of Rs. 80000 and
withdraw Rs. 30000 for personal use. Calculate closing capital and profit/loss earned during the year.​

Answer 1

closing capital= 0pening capital+additionalcapital-drawings

2, 00, 000+80, 000-30, 000

=2, 80, 000-30, 000

=2, 50, 000

now,

closing asset =capital +liabilities

=250000+100000

=350000

also,

profit= total asset - closing asset

= 450000-350000

=100000