Sundar started a business on Jan 1 , 2011 with Rs 600000 . He borrowed Rs 100000 from his friend . At the end of year his asstes were Rs 1500000 . Find out hias capital at the end of year and the profit made by him . He also introduced Rs 200000 as fresh capital during the year .
Solve step by step !!
Ankushk:
what is asstess
Loan is asset or liability ?
loan is a liability
Assets :- Which is not beneficial now but will be beneficial in future . It is also not for sell .Like ;- building and land , fernitureetc
loan taken from sombody else is liability and loan given by us to somebody else is an asset
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assets= 1500000
liability( loan) = 100000
closing capital = 1500000 - 100000
= 1400000
now for the profit
closing capital - (opening capital + additional capital)
1400000 - ( 600000+200000)
=1400000 - 800000
= 600000
I hope it would help
liability( loan) = 100000
closing capital = 1500000 - 100000
= 1400000
now for the profit
closing capital - (opening capital + additional capital)
1400000 - ( 600000+200000)
=1400000 - 800000
= 600000
I hope it would help
What is Rs 600000 at the start of year Jan 1 , 2011 , which he used to start business ?
it is the opening capital
thanks a lot :D
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