Question

Ravi started business on 1st April,2018 with a capital of Rs 1,20,000. He took bank loan of Rs 40,000. On 31st March,2019 his assets were Rs 2,40,000 and creditors were Rs 30,000. Bank loan has not been paid so far, however,interest on loan has been paid.find out closing capital and profit earned during the year.

Answer 1

Answer:

1.4.2018_cash a/c d. Dr. 120000

To Ravi's capitals. 120000