Question

Ram started business on 1 april on 2002 with a capital of rs 2500000 during the year 2002-03 he introduced additional capital of rs 60000 and withdraw 30000 personal use on 31 march 2003 his capital is stood rs 300000 find out his adjusted capital and profit made loss incurred in 2002-03

Answer 1

Calculation of Profit for the year 2002-2003

Closing Capital - Capital as on 31.03.2003             Rs.3,00,000

(+) Drawings during the year                                     Rs.30,000

( - ) Additional Capital                                                Rs.60,000

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                                                                                       Rs. 2,70,000

( - )Opening Capital - Capital as on 01.04.2002          Rs.2,50,000

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profit for the year 2002-03                                           Rs.20,000